Jerome Powell News

US Fed`s rate hike actions have a direct bearing on Indian markets and the rupee, as higher interest rates in the US take the sheen off Indian equities, weaning away foreign investors, say market analysts.

The central bank forecast inflation at 4.3 per cent for 2022, versus its typical target of 2 per cent a year. 

The Federal Reserve raised interest rates on Wednesday.

The Fed also will update its forecasts for the economy and how aggressively officials think the central bank will have to act in coming years.

Powell is to succeed current Fed chair Janet Yellen, when her terms expire on February 3.

The committee approved Powell`s nomination by a vote of 22-1.

During Powell's time as a governor the Fed has regularly come under the criticism of Republican lawmakers worried that the central bank`s bondbuying and other crisis response programs created risks to the financial system, and that central bankers had accumulated too much discretionary power.

Low rates cut the opportunity cost of holding non-yielding assets such as bullion, while depressing the dollar, in which it is priced.

Yellen's decision gives Trump in his first year in office the chance to fill five positions on the Fed's seven-member board, in addition to picking Powell to be the next Fed chairman.

The appointment of Powell is likely to be well received on Wall Street, as he has never dissented from any monetary policy decision since becoming governor in May 2012.