Here’s the lowdown: earlier this week on Jan. 16, markets in the US got a reality check when President Trump dropped hints that his economic adviser Kevin Hassett might stay put instead of stepping up as the next Fed chair 📉. This unexpected twist stirred a mild sell-off across stocks and bonds.
The S&P 500, Dow Jones Industrial Average, Nasdaq Composite and Nasdaq 100 all logged small losses, while the VIX index — Wall Street’s fear gauge — jumped higher. Even precious metals felt the heat, with spot gold easing back and silver taking a sharper tumble.
So why should you care in Mumbai, Jakarta or Manila? The Fed chair sets the tone for US interest-rate policy, and shifts here can ripple into Asia’s markets — from EM fund flows to borrowing costs for local startups. A rate cut can mean cheaper loans and more liquidity, while uncertainty often translates to bigger swings.
Right now, sentiment is fragile, but every dip can be an opportunity for long-term investors. Keep an eye on the Fed timeline: a new chair nomination still needs Senate approval, so more volatility could be on the horizon.
Stay tuned for updates and remember: in the fast-paced world of finance, knowledge is power 💡🌍.
Reference(s):
Uncertainty over next Fed chair weighs on US stocks and bonds
cgtn.com
