Quickly understand the history and background of various well-known coins

Fed Pauses Rate Hikes, Asia-Pacific Markets Rise

Coin WorldThursday, Jan 30, 2025 3:32 am ET

1min read

Asia-Pacific markets rose on Thursday, with investors digesting the Federal Reserve's decision to pause interest rate hikes. The region's markets saw a modest increase despite a sharp decline on Wall Street the previous day. The Fed's decision to keep rates unchanged at 4.25% to 4.50% was in line with analysts' expectations, as the central bank cited "somewhat elevated inflation" as a reason for the pause.

The pause in rate hikes comes after a series of aggressive tightening moves by the Fed to combat inflation. The central bank has raised interest rates by 4.25 percentage points since March 2022, the most significant tightening cycle since the 1980s. The Fed's decision to pause rate hikes was widely expected, as inflation has been cooling in recent months, and economic growth has slowed.

Investors in the Asia-Pacific region appeared to welcome the Fed's decision, with markets rising in thin holiday trade. The MSCI Asia Pacific Index gained 0.4% as of 11:45 a.m. in Tokyo, with stocks in Japan, South Korea, and Australia leading the gains. The Hang Seng Index in Hong Kong also rose, gaining 0.5%.

The Fed's decision to pause rate hikes is likely to be seen as a sign that the central bank is becoming more dovish in its approach to monetary policy. This could lead to a rebound in risk assets, such as stocks and commodities, as investors become more optimistic about the outlook for the global economy. However, the Fed has made it clear that it is not yet ready to cut interest rates, and that it will continue to monitor inflation and economic data closely.

The upcoming Personal Consumption Expenditures (PCE) report, set to be released this Friday, is expected to be the next significant catalyst for risk assets. Market participants are now shifting their focus to this report, which is expected to provide further insight into the state of the US economy and the outlook for inflation.

In other news, Bitcoin ETF inflows remained weak on Wednesday, despite the Fed's decision to keep interest rates unchanged. The 12 spot Bitcoin ETFs recorded $92.09 million in inflows on Jan. 29, continuing the weak inflow trend for the second consecutive day. The majority of inflows seen on the day came from Grayscale

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.