After Fed rate rise, all eyes shift to the ECB

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Slower-than-expected inflation numbers published on Wednesday also hurt the pound, as it weakens the case for a Bank of England rate rise in August. According to WalletHub, the popular personal finance website, factoring in the six previous rate hikes, credit card users will pay nearly $10 billion dollars more in 2018 for their credit debt.

This hike, which was widely expected, is the Fed's second of 2018, and the central bank signaled it is likely to do two more increases by the end of this year.

The FTSE 100 climbed 0.81 per cent to 7,765.79, a three-week high, having fallen as much as 0.7 per cent earlier when a more hawkish rates outlook from the Fed weighed on equities.

Some analysts said that hawkish comments from the Fed contributed to undermining investors' sentiment, raising the possibility of the USA rate moving up at a faster than expected pace.

When the Fed tightens credit, it aims to do so without derailing the economy.

Powell also said that the central bank will hold a press conference after every policy meeting starting in January 2019.

We were in the midst of a sales meeting on Wednesday when we paused to see the Fed's decision. "We won't overreact to it being over 2%".

Despite that, wages have been moving up gradually - not taking off - and inflation has been close to or below the Fed's 2 percent goal.

Though rates are now roughly positive on an inflation-adjusted basis, the Fed still described its monetary policy as "accommodative", with gradual rate increases likely warranted as a sturdy economy enters a 10th straight year of growth.

The ECB announced it would end its bond-purchase program at year-end but signalled that any interest rate hike was still distant.

"The Fed's rate hike this time should have only limited impact on South Korea", Deputy Finance Minister Ko Hyung-kwon said in a meeting with senior officials from the Bank of Korea and the Financial Services Commission.

At nine years, the economic expansion is now the second-longest in history. While there are some concerns about its age, there are few economists predicting a recession in the near term.

The measure pushes the rate from 1.75 percent to two percent, with the Federal Open Market Committee (FOMC) having an optimistic view on economic growth and higher inflation expectations.

The Fed has long aimed for 2 percent inflation, a level policymakers think is key to a healthy economy. During the meeting, I had a side screen showing the real-time movements of mortgage-backed securities, stock, and 10-yr U.S. treasury so that my team and I can see how pricing may be impacted.

Italy's shaky politics and quick spike in interest rates recently were a reminder of the troubles the euro area could still face if financial conditions tighten, Brooks said, while rising debt levels in countries like Brazil and Turkey echo the emerging market traumas of the 1990s. If they push past that and the job market isn't overheating, it could needlessly choke off growth and tamp down inflation. Telecom stocks, utilities and real-estate investment trusts are among the biggest dividend payers in the market, and they were among the top-performing sectors in the S&P 500. So, in the current environment, we think the "predictive power" of the inverted yield curve may not be the same as perhaps it has been historically.

Still, many Asian currencies remained fairly stable so far, thanks to robust growth in the region. Unemployment and inflation are low.