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US Federal Reserve Chairman Jerome Powell is holding a press conference after the meeting of the Federal Reserve Committee in Washington, Colombia on March 19, 2025.
Roberto Schmidt | AFP | Gets the image
The US Federal Reserve has completed its meeting exactly as the market observers expected: keeping stable interest rates. Although the reduction can be a pleasant surprise for some – because lower interest rates usually support the economy and the stock market – it can also enhance investors’ worries that the economy is heading south.
The balm provided for the Fed Point, or prediction where the central bankers believe that they provide balm in the coming years. Coming on the meeting, some investors were concerned that the Fed could refrain from reducing interest rates this year, given the uncertain consequences of US President Donald Trump inflation.
But the Fed decided to keep its estimated two cuts for 2025, which helped the stock market bounce. In these changing times, the acting is expected, and reinforcing expectations, when doubts creep, can have a more decisive impact than any unexpected stimulation measures.
Fed kept the bids this year see two cuts
The US Federal Reserve on Wednesday has decided Keep a key borrowing level from 4.25%-4.5%As the markets were expected. Central bankers said they still see half the interest rate point, which usually means two cuts this year. Fed too reduced its projection for US economic growth In 2025 up to 1.7% from 2.1% in December, while increasing inflation forecast to 2.8% from 2.5%. Camila Chair Jerome Powell Press -conference noted the risks of tariffs but said they could be ”fussy“
Prospective Bid Reductions help stock stock
US markets rallied on Wednesday As the market participants cheer the Fed’s decision to keep the forecast for two decreases this year. A S&P 500 rose by 1.08% Dow Jones Industrial Medium grew by 0.92% and Nasdaq Composite jumped by 1.41%. Regional Stoxx 600 in Europe added 0.19%. Turkey’s stock index plunged by 8.72% after surprise Arrest mayor Istanbul Imomoglu’s screenThe leading figure of the opposition party on the charges he denies.
Economic growth “better than people think”
Bank of America CEO Brian Mainikhan said CNBC on Wednesday that despite Buyers still continue to waste“This means that the economy should expose better than people think.” This means that gross domestic product this year can still grow about 2%rather than Almost 3% 2024 and 2023.
Google and Apple on EU radar
The European Commission, the EU Executive Authority, said on Wednesday that Google Parent found Alphabet Search and Google Play Products In violation of the Law on Digital MarketsA law aimed at combating competition problems. Separately the commission also sent recommendations Apple According to DMA, calling on the iPhone manufacturer to take specific steps to fulfill the interaction commitment in accordance with the EU competition rules.
Tencent almost doubled the profits in the fourth quarter
Favorable published Profit in fourth quarter 172.4 billion Chinese yuan (23.9 billion dollars), which won the expectations, compiled by LSEG and amounted to 11% above the year. The Chinese technological giant’s profit amounted to 51.3 billion yuan, higher than the expected 46.03 billion yuan, and increased by 90% since the same period in 2023. AI Cloud’s income doubled in the year 2024, said Tencent, although he refused to give a certain sale number.
(Pro) Wall -Rate heard one message from Fed
The Fed discussed a number of topics at its meetings and press conferences, such as interest rates forecasts, inflation and gross domestic product this year, as well as the potential consequences of the US President Donald Trump. But Seemed Wall -Rate to hear only one message – And it helped the shares bounce on Wednesday.
The Chinese National Flag enters the financial area of Lujiazui in the background.
VCG | Visual China Group | Gets the image
Chinese markets should surpass Wall -Rate when the US is an exception to the pause
Last week, the S&P 500 for the first time since 2023 slipped into the territory. Unlike the MSci Index, China has scored 19% from the beginning of the year until March 9, according to Goldman Sachs, noting its best start a year in history.
Contrasting success means a quick turn just a few months ago when many investors believed that the US is unique to the weather for economic and political storms affecting other countries. Chinese shares were also suffered from the normative hassle and problems of the Chinese economy.
“The US has a good period, and this is the end because Trump’s policy is very anti-Economy. China was a very bad period, but it seems to be recovering,” said Richard Harris, CEO of Port Shelter Investment Management.