Asian markets and yen rise as Fed Chairman Powell signals potential interest rate cut.
Asian markets and the yen rose on Monday following U.S. Federal Reserve Chairman Jerome Powell's suggestion of a potential interest rate cut. Powell said "the time has come" to start adjusting policy, and the direction of travel is clear. Analysts expect the central bank to make a move as soon as next month. While the comments provided a boost to the markets and helped put the market turmoil earlier in August behind them, investors were warned to be on guard for unexpected data that could burst the optimistic bubble. Equity markets are now mainly focused on the size of the interest rate reduction and how many more will follow. Traders are betting on around one percentage point of reductions before the end of the year.
August 25, 2024
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