Traders expect the Fed to raise its benchmark lending rate but hope it will be the last increase in a rapid series over the past year. They worry U.S. and European rate hikes to cool inflation might tip the global economy into recession.
"A hawkish decision could put strong pressure on all asset classes," said Anderson Alves of ActivTrades in a report. A more dovish outlook could "prompt expectations that the Fed could start cutting rates again in the last quarter of this year." The Kospi in Seoul rose 0.4% to 2,433.39 after data showed South Korea's exports plunged 16.6% from a year earlier in January. December industrial production fell 2.9% from the previous month.
Investors are hoping the Fed declares victory and starts rolling back rate increases late this year despite repeated warnings by central bank officials that the cost of borrowing could be kept highfor an extended period.
Fake news. The stock market is the greatest driver of inequality that we have today.