On December 14, 2016, the Fed finally raised interest rates by 25 basis points.
NEW YORK, March 15 US stocks added to gains, while Treasury yields fell and the dollar weakened on Wednesday, after the Federal Reserve raised interest rates for the second time in three months but did not flag any plan to accelerate the pace of monetary tightening.
U.S. Treasury yields fell sharply in reaction to the Fed's rate view for the rest of the year, prompting the dollar to fall more than 1 percent against the yen. The greenback was pressured by the Federal Reserve's cautious interest rate outlook and investor concern over a potentially protectionist slant to a G20 meeting this weekend. "If Wilders does not do as well as expected on Wednesday then we could see the markets start to reduce expectations of a victory for the French National Front leader Marine Le Pen in France's presidential elections in May".
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent and were on track to end the week with a 3.5 per cent gain, its biggest increase since the week ended July 15. Minutes from the Bank's latest Monetary Policy Committee meeting shocked markets on Thursday by showing one outgoing official voting for a rise in rates, and others on the verge of doing so if inflation gets much higher. Its strongest since March 1, 0.2 percent higher on the day.
Oil prices slipped as support from a weaker dollar was offset by USA crude inventories near record high levels.
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In the meanwhile, the leaders of the Congress were busy squabbling over the choice of it's legislative party leader. Besides the humiliating defeat of Parsekar, who lost by over 7,000 votes, six BJP ministers too were trounced.
According to the CME FedWatch tool, the markets sees a 91 per cent chance that the central bank will raise interest rates by 0.25 percentage points to 0.75-1.0 per cent, with signs of continued improvement in the world's biggest economy allowing the Fed to take only its third traditional step along the path of policy normalisation since the financial crisis. The Australian dollar held steady at $0.7702, within sight of a three-week peak of $0.7720 touched on Wednesday. Platinum was up 0.8 percent at $939.60 while palladium added 0.2 percent to reach $745.50.
Prices on benchmark 10-year Treasuries fell 8/32 to yield 2.531 percent, up from 2.504 percent late on Wednesday. US crude settled up 2.4 percent at $48.86 a barrel, after touching a three-month low a day earlier.
US 30-year and 10-year Treasury yields, which benefit from low inflation since reduced purchasing power erodes their interest payouts, fell about two basis points after preliminary University of MI data showing low inflation in early March.
Spot gold was up 0.2 percent at $1,229.40 an ounce by 2:53 p.m. EDT (1853 GMT), taking this week's gain so far to 2.1 percent.
It slid more than 1 percent the previous day to touch 100.490, its lowest since February 17.