Stocks waver, short-end U.S. yields rise after hawkish Fed statement

NEW YORK, Sept 20 - A gauge of global equities wavered and shorter-dated Treasury yields edged up on Wednesday after the Federal Reserve projected another rate hike by year end and monetary policy significantly tighter through 2024 than previously expected.

Fed officials now see the personal consumption expenditures price index at 3.3% at year end, up from June's forecast of 3.2%, and its overnight lending rate to be 5.1% at the end of 2024, about 50 basis points higher than futures have projected. The yield on two-year Treasuries , which reflect interest rate expectations, rose 3.5 basis points to 5.144% as the futures priced in the Fed's overnight rate staying above 5% through September 2024 - further out than previously projected.

"Right now the message is we're going to leave rates higher for longer to make sure we slay the inflation dragon. That means less rate cuts in 2024," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. Earlier in Europe, the pan-regional STOXX 600 index rose 0.91%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and Japan's Nikkei fell 0.7%.

The yen is down 11% on the dollar this year as expectations firm for U.S. rates to stay high and Japanese rates to stay low, earlier hitting a 10-month trough of 148.17 per dollar.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks hope for gains before Fed's September meetingMarkets seek to reverse course ahead of the Fed’s September FOMC meeting, after 2 weeks of downtrends.Yahoo Finance Markets Reporter Jared Blikre joins to take a look at the market volatility index (^VIX), giving insights into how markets are anticipating the Fed’s next interest rate decision on Wednesday. 
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

European Stocks Steady Ahead of Fed, Oil Triggers Inflation WoesEuropean stocks were steady as investors were wary of making bets ahead of this week’s central bank meetings, while Brent oil’s rally to $95 triggered worries about inflation spiking again.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Stocks slide ahead of Fed meeting, Instacart IPO: Stock market news todayStocks fell on Tuesday as the Federal Reserve was set to begin its latest policy meeting.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks slide as Fed meeting begins, Instacart IPO: Stock market news todayStocks fell on Tuesday as the Federal Reserve was set to begin its latest policy meeting.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks end lower amid Fed meeting, Instacart IPO: Stock market news todayStocks fell on Tuesday as the Federal Reserve began its latest policy meeting.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Asia Stocks Set for Cautious Start as Fed in Focus: Markets WrapEquity markets in Asia are poised for a muted open after US stocks posted modest losses ahead of the Federal Reserve’s policy decision, with traders betting interest rates will be higher for longer to curb inflation.
Source: BNNBloomberg - 🏆 83. / 50 Read more »