The Federal Reserve offered no surprises this month.
The Fed, in a statement released after its two-day policy meeting, offered nothing to dispel market expectations that it will deliver its second rate increase of the year when it meets in June.
United States stocks fell on Wednesday as investors digested a statement from the Federal Reserve, which left interest rates steady and said inflation had "moved close" to its target, while the dollar climbed late against a basket of currencies.
And Fed participants have discussed tolerance for an overshoot on inflation, not that numbers are near its 2% target.
Consumer prices rose 2% in March from a year earlier, according to the Fed, after a year in which inflation softened. It expressed a confident economic outlook, saying activity had expanded at a moderate rate and that inflation was close to its 2 percent target. Any undershooting of the 1.2% core inflation estimate could extend losses for the single currency today. One exception is Goodfriend, who has favored changes pushed by conservatives to limit the Fed's flexibility in rate decisions.
Equally, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, while South Korean stocks tumbled 0.7 percent.
White House mystery solved over what happened to Macron's gifted oak tree
While not naming China, Macron said France will increase its influence in the region to ensure "rules-based development". Macron had intended for the tree to serve as a reminder of the historic "ties that bind" the USA and France.
That meeting will be one of the four each year in which Powell will hold a press conference, which will allow him to explain the reasoning behind any move.
The Fed's comments on the labor market were also of interest: as in March it said that the labor market "continued to strengthen.".
The release of the Fed statement overshadowed the release of a report from payroll processor ADP showing private sector employment increased by slightly more than anticipated in the month of April. Job gains remained strong, while growth in household spending moderate from its strong Q4 pace. "The market is still a bit too long euros and remains vulnerable", she said.
"On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 per cent", it said in the statement. Risks to the economic outlook appear roughly balanced.
The silver price rose over 1 percent on Thursday (May 3) after the Federal Open Market Committee (FOMC) eased investors' concerns by announcing that interest rate increases will be gradual. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and worldwide developments. The phrase "the Committee is monitoring inflation developments closely" was notably absent.
The Chicago Mercantile Exchange's FedWatch website, which monitors trading on futures contracts tied to the central bank's benchmark rate, on Wednesday listed the odds of a rate hike next month at 100%, including a 9% chance that the Fed would raise by more than its usual adjustment of 0.25 percentage points. The minutes from the meeting suggest the inflation upturn was expected and "wouldn't change the projected path for the federal-funds rate".