WS #16568
Monetary policy remains tight as the Federal Reserve held interest rates at 3.75%-4.00%, with two committee members voting for a hike, signaling persistent inflation concerns. The Bank of Japan also kept rates steady, noting inflation is not yet sustainably at target. Treasury yields remain elevated near 5.05%, keeping borrowing costs high for consumers and corporations, which weighs on growth-sensitive assets and limits the upside for equities in a risk-off environment.
Global Central Banks
Monetary policy remains tight as the Federal Reserve held interest rates at 3.75%-4.00%, with two committee members voting for a hike, signaling persistent inflation concerns. The Bank of Japan also kept rates steady, noting inflation is not yet sustainably at target. Treasury yields remain elevated near 5.05%, keeping borrowing costs high for consumers and corporations, which weighs on growth-sensitive assets and limits the upside for equities in a risk-off environment.