[HONG KONG] Asian investors on Wednesday struggled to track a record close on Wall Street as they await the Federal Reserve’s latest policy meeting hoping for a guide on its plans for monetary policy.
The central bank is all but certain to lift interest rates after its meeting ends later in the day but the main focus will be on chair Janet Yellen’s comments afterwards.
Some analysts suggest the rise could be the Fed’s last this year as traders fret over tepid inflation and the future of Donald Trump’s big-spending, tax-cutting agenda. Hopes for those policies had fuelled expectations of a surge in prices – and a jump in borrowing costs – but is now in trouble as the tycoon in enveloped in political crises.
“With the rate hike now 96 percent priced in focus will fall on the Fed’s forward guidance and importantly their views surrounding low inflation,” Stephen Innes, senior trader at Oanda, said in a note.