INSUBCONTINENT EXCLUSIVE:
Fed indicated it is likely to raise United States interest rates in March.Shanghai: Asian shares fell to their lowest in more than 14
months, short-term United States yields rose to 23-month highs and the dollar strengthened on Thursday after the Federal Reserve's
chairman signaled plans to steadily tighten policy.At the same time, rising investor concerns over political tensions between Russia and
Ukraine exacerbated worries over tight energy market supply, keeping oil prices elevated at multi-year highs.In its latest policy update on
Wednesday, the Fed indicated it is likely to raise United States interest rates in March, as has been widely expected, and reaffirmed plans
to end its bond purchases that month before launching a significant reduction in its asset holdings.But in the follow-up press conference,
Powell warned that inflation remains above the Fed's long-run goal and supply chain issues may be more persistent than previously
thought."There was a marked shift in terms of a relatively dovish statement and then a relatively hawkish press conference," said David
Chao, global market strategist, Asia Pacific (ex-Japan) at Invesco."Powell (is) not committing to the size or the frequency of rate hikes
and also the timing of the balance sheet reduction
I think that buys him a bit of wiggle room as to how quickly and with what velocity he wants to normalise monetary policy in the United
it's very data dependent and so we're certainly watching other economic data that's going to be released especially inflation
increasingly prioritise fighting inflation walloped share markets, erasing a Wall Street rally.Asian shares also tumbled, with MSCI's
broad gauge of regional markets outside Japan down 1.6% in early trade on Thursday at its lowest level since early November 2020.Hong Kong's
Hang Seng index and Australian shares fell 2% and Chinese blue-chips were 0.2% lower.In Tokyo, the Nikkei fell 1.9%, touching its lowest
point since December 2020.The policy-sensitive United States 2-year yield jumped amid expectations of Fed tightening, rising to a top of
1.1780% in morning trade in Asia, a level last reached in February 2020
The benchmark 10-year yield also ticked up from Wednesday's close, rising to 1.8548% from 1.846%.The dollar rose on the back of higher
yields, lifting the United States dollar index, which measures the greenback against major peers, to 96.557.The yen edged slightly higher
to 114.57, while the euro weakened to $1.1230.Adding to global investor concerns, the United States said on Wednesday it had set out a
diplomatic path to address sweeping Russian demands in eastern Europe, as Moscow held security talks with Western countries and intensified
its military build-up near Ukraine with new drills.Worries over tensions between Russia and Ukraine had lifted crude prices above $90 per
barrel a day earlier, a level last seen in October 2014.On Thursday, global benchmark Brent crude eased 0.2% but remained just below $90 per
United States West Texas Intermediate crude was down 0.2% at $87.18 per barrel.United States officials say they are in talks with major
energy-producing countries and companies worldwide over a potential diversion of supplies to Europe if Russia invades Ukraine, although the
White House said it faces challenges finding alternative sources of energy supplies.Spot gold slipped 0.1% to $1,816.42 an ounce on the
firmer dollar.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated
