Asian shares eased on Thursday while bonds rallied after a downbeat economic outlook from the U.S. Federal Reserve stoked speculation it would have to add to already historic levels of stimulus to safeguard recovery.
FILE PHOTO: An employee of the Tokyo Stock Exchange works at the bourse in Tokyo, Japan, February 6, 2018. REUTERS/Toru Hanai
The Dow had ended Wednesday down 1.04%, while the S&P 500 lost 0.53%. Bucking the trend, the Nasdaq Composite added 0.67% to a fresh record helped by gains in Microsoft and Apple. As a result, Fed Chair Jerome Powell said he was “not even thinking about thinking about raising rates”. Instead, he emphasised recovery would be a long road and that policy would have to be proactive with rates near zero out to 2022.
Powell confirmed the Fed was studying yield curve control, a form of easing already employed by Japan and Australia.
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