Asia stocks retreat after Fed tempers aggressive rate cut expectations

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Asian stocks retreated on Wednesday and the dollar inched up from three-month lo...

TOKYO - Asian stocks retreated on Wednesday and the dollar inched up from three-month lows after Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

Separately, St. Louis Fed President James Bullard told Bloomberg Television he does not think the U.S. economy is dire enough to warrant a 50-basis-point cut in July, even though he pushed to lower rates last week. Trump said on Twitter on Monday that the Fed “doesn’t know what it is doing,” adding that it “raised rates far too fast” and “blew it” given low inflation and slowing global growth.

“The focus is now on the G20 summit. Market expectations for a meaningful breakthrough being achieved in U.S.-China trade talks are quite low, so any signs of an improvement could bode well for risk sentiment.” The dollar index against a basket of six major currencies was up 0.15% at 96.289, extending modest overnight gains.

 

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