US gross domestic product (GDP) increased at a more-than-expected 2.4% annualized rate last quarter thanks to healthy consumer spending and businesses shelling out on investments. The latest figures show that not only is the US economy not spiraling into a recession due to interest rate hikes, it's actually getting stronger as the year goes on.
In fact, underlying inflation rose at its slowest pace in two years. This could be a sign of the "soft landing" that FOMC Chair Jerome Powell seeks.
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The European Central Bank also took it a cue from the FOMC and raised interest rates to a 23-year high. Investors think it could be the ECB's last rate hike this cycle.
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But, according to CNN, Japan's central bank kept interest rates unchanged today despite rising inflation but hinted that it could gradually abandon years of cheap money, sending the yen soaring and stocks tumbling. The Bank of Japan (BOJ) said it kept unchanged its short-term interest rate at minus 0.1% and maintained its target for the yield on 10-year government bond at around 0%.
But the central bank also said it would adopt a more flexible approach to controlling the yield on government bonds — which affects borrowing costs across the world's third biggest economy,diluting a key pillar of its longstanding ultra-loose monetary policy.
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After a historic 13-day winning streak, the Dow—along with the other two major indexes—closed lower as its dizzying rise finally succumbed to gravity. There were some strong individual performances, however. Meta kept its impressive 2023 rolling after giving an optimistic earnings report.
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