The Fed’s announcement was in line with what economists and markets expected as the central bank moves to combat inflation that now looks likely to persist longer than it did just a few months ago. The central bank reserved the right to change the rate at which it reduces the bond purchases, which have been intended to hold down long-term rates and spur borrowing and spending. At that point, the Fed could decide to begin raising its key short-term interest rate, which affects many consumer and business loans. If that pace is maintained, the Fed could be done winding down its bond purchases as early as June. Eastern, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. All three indexes set their latest record closing highs. The Nasdaq climbed 1%, extending its winning streak to an eighth day.

On Wall Street, the S&P 500 rose 0.6% and the Dow Jones Industrial Average added 0.3%, both marking their fifth straight gain. Eyes also remain on earnings reports expected from an array of companies in Asia, including Japanese automakers and technology companies. “We got a ‘dowkish’ Fed move,” was the way RaboResearch characterized the message.īut long-term worries about Asian economies remain because of concerns there may be a sixth wave of coronavirus infections, despite growing signs of a return to normal economic activity and a freer flow of people traveling in some nations. Hong Kong’s Hang Seng added 0.4% to 25,131.16, while the Shanghai Composite rose 0.3% to 3,509.13.Īnalysts said the signs from the Fed continued to be dovish, as well as hawkish, reassuring global markets that interest rates weren’t going to be raised for some time. Japan’s benchmark Nikkei 225 gained nearly 1.0% in early trading to 29,809.67. Federal Reserve on winding down the extraordinary aid for the economy it been providing since the early days of the pandemic. TOKYO (AP) - Asian shares rose Thursday, boosted by the announcement from the U.S.

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