Asian stocks mixed after Wall Street rallies as 'time has come' for rate cuts

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Jerome Powell اخبار

Federal Reserve,Interest Rates

HONG KONG (AP) — Asian stocks were mixed Monday after U.S. stocks rallied close to their records on the expectation the Federal Reserve will start cutting...

HONG KONG — Asian stocks were mixed Monday after U.S. stocks rallied close to their records on the expectation the Federal Reserve will start“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Japan’s benchmark Nikkei 225 slipped 1.1% in morning trading to 37,944.68 due to the stronger currency. Powell’s speech marked a sharp turnaround for the Fed after it began hiking rates two years ago as inflation spiraled to its worst levels in generations. The Fed’s goal was to make it so expensive for U.S. households and companies toWhile careful to say the task is not complete, Powell used the past tense to describe many of the conditions that sent inflation soaring after the pandemic, including a job market that “is no longer overheated.

The smaller stocks in the Russell 2000 jumped 3.2% to lead the market. Smaller companies can feel greater benefit from lower interest rates because of their need to borrow to grow.In the bond market, the yield on the 10-year Treasury fell to 3.79% from 3.86% late Thursday. The two-year Treasury yield, which moves more closely with expectations for action by the Fed, dropped to 3.91% from 4.01% late Thursday.

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