Global stocks fell Thursday after the U.S. Federal Reserve raised its key interest rate and the Bank of England revealed it was unexpectedly close to hiking its own benchmark rate at its policy meeting.
The Bank also outlined its plan of reducing its balance sheet, which it expanded by buying bonds and other securities in order to tackle the housing crisis leading up to the great United States financial meltdown in 2008.
The VND/USD exchange rates saw little changes this morning although the US Federal Reserve (Fed) raised interest rates on Wednesday on the confidence in a growing economy and strengthening job market in the world's biggest economy. The dollar would get strengthened by the Fed's move. The basic idea will be that the Fed will stop reinvesting the principal of securities when they mature.
Former Saudi crown prince meets king's son
Saudi Arabia has typically been ruled by kings in their 70s or 80s. "I don't think that was necessarily his intention", Joseph W. Mohammed, previously in charge of his father's royal court, has been rapidly promoted since then to various cabinet posts.
In an effort to push long-term rates interest higher, the Fed says it will start shedding the Treasury bonds and mortgage-backed securities it bought up to help stimulate the economy following the financial crisis.
Federal Reserve Board Chairwoman Janet Yellen arrives at a news conference following a meeting of the Federal Open Market Committee June 14, 2017 in Washington, DC. Fed officials previously increased the rate in March to a range of 0.75 to 1 percent. Still, the central bank had signaled to Wall Street it would raise interest rates yesterday, and seemed to have painted itself in a corner.
Several economic indicators in the past few months, including exports and consumer sentiment, have displayed improvement, prompting the bank to push up its forecast for economic growth this year to 2.6 percent.
They forecast US economic growth of 2.2 percent in 2017, an increase from the previous projection in March.
Prince Philip hospitalized for infection
On Saturday he appeared on the balcony of Buckingham Palace along with the Royal Family for the annual Trooping the Colour parade. He has suffered a blocked coronary artery and a severe bladder infection in recent years but has been in generally good health.
While the hike was widely expected, some investors said the central bank's tone was more hawkish and that raised concern about the pace of USA economic growth.
A retreat in inflation over the past two months has caused jitters among some Fed officials who fear that the shortfall, if sustained, could alter the pace of future rate hikes. Analysts and investors had had mixed expectations ahead of the Fed, with some expecting a more dovish outlook given the recent weaker economic data, but long term the Fed's outlook is well supported and that is providing support for the greenback.
The US jobless rate fell to a 16-year low last month.
Tropical Storm Cindy threatens Gulf Coast; Bret in Caribbean
The Gulf of Mexico is home to about 17 percent of U.S. crude and 5 percent of dry natural gas output, according to the U.S. The eye of this storm is expected to go west, with tropical storm warnings in effect all the way to Galveston, Texas.