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Major indices in Japan, South Korea, and Australia experienced declines following the announcement. Japan’s Nikkei 225 fell 0.79% to 32,761.51, and the Topix index dropped 0.4% to 2,396.53. The Kospi index in South Korea decreased by 1.19% to 2,529.68, while Australia’s S&P/ASX 200 saw a 0.79% decrease, ending at 7,106.60.
U.S stocks also faced a downturn despite the Federal Reserve maintaining key interest rates as previously anticipated while adjusting economic projections upwards. The Dow Jones Industrial Average fell by 76.85 points or 0.22%, landing at 34,440.88, while the S&P 500 lost 41.75 points or 0.94%, settling at 4,402.2. The Nasdaq Composite saw a decline of 209.06 points or 1.53%, ending at 13,469.13.
The Federal Reserve has kept its target range steady at between 5.25% and 5.5%. Updated quarterly projections reveal that most officials are in favor of an additional rate hike in 2023, implying a potential reduction in monetary easing next year.
Despite the stability in rates, the Federal Reserve’s projections suggest a possible rate hike of 25 basis points later this year and a subsequent rate cut of 50 basis points next year. Core inflation remains above the target of 2%, even though it is moderating, with expectations for the end of the year standing at 3.3%.
The impact of these changes was also reflected across Sensex, Nifty, BSE, NSE, and other Indian stock markets on the same day.
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