LONDON, May 3 (Reuters) - The euro rose off four-month lows on Thursday as the dollar's recent rally came to a halt after the Federal Reserve did little to alter market expectations for further interest rate rises this year.
Sluggish inflation stood in the way of quicker rate rises a year ago, but headline inflation has recently returned to the Fed's target of 2 per cent, leaving policymakers better placed to forge ahead with their rate-lifting plans.
The Fed's rate-setting committee also downplayed a recent slowdown in economic and job growth, saying activity had been expanding at a moderate rate and job gains, on average, had been strong in recent months.
The FOMC's two-day meeting followed the release of data Monday that showed inflation measured by the central bank's preferred gauge had hit its 2 percent target after being below that goal for nearly every month since April 2012. Investors had all but ruled out another increase at this week's meeting.
Many on Wall Street think the economy is accelerating so quickly that the Fed will have to hike rates three more times in 2018 to keep the economy from overheating.
The U.S. dollar bought 109.68 Japanese yen, lower than 109.80 Japanese yen of the previous session.
The changes in the statement "set the Fed up for a June hike - barring any unforeseen shocks", says Michael Dolega, senior economist at TD Economics. They may still raise rates in June.
The dollar has been buoyed in recent weeks by the strong USA economic outlook and rising Treasury yields amid signs of a relative slowdown in some other developed economies, such as those in Europe.
But data released on Monday showed price gains are now effectively at the Fed's target.
This assessment was supported by this week's Personal Consumption Expenditures Index which rose to 1.9 percent in March, the highest since February 2017.
And the uptick has jarred financial markets, which fear the Fed will have to raise rates at a faster pace, possibly three more times this year, rather than the two increases previously expected.
Last night the Fed acknowledged rising inflation, which...
Expectations of faster-than-expected rate rises in the US, as well as a rapid covering of positions by investors short on the dollar, has sent the greenback to its strongest level since mid-January.
The economy is now in its second-longest expansion since World War Two.
The country's unemployment rate is now at a 17-year low of 4.1 per cent.
Trade relations between the United States and China have already been strained as Trump has weighed imposing tariffs on up to $150 billion of Chinese imports. Fed policymakers had flagged the potential negative impact of the conflict in recent public comments, but adopted a wait-and-see attitude.
The Federal Reserve kept its benchmark interest rate unchanged Wednesday but noted that inflation is nearing its 2 percent target rate after years of remaining undesirably low.
Asian shares slipped as hopes waned for real progress in Sino-U.S. trade talks, which are due to kick off on Thursday.
The New York Giants just finished off season voluntary workouts, but one former first round draft pick was not in attendance. Flowers is expected to compete for the starting right tackle position along with 2017 undrafted free agent Chad Wheeler .
Meanwhile, sharper input inflation continues to raise prices of output, extending the current period of inflation to 18 months. The weaker demand conditions also dragged output for the second consecutive month to the lowest level since July 2017.
Nearly every local police department now has a prescription drop off box in their lobby and it is typically available 24/7. According to the 2015 National Survey on Drug Use and Health, 6.4 million Americans abused controlled prescription drugs.
However, she struck a note of caution saying, " Freedom of the press , like any other freedom, is never completely secure". The placards read, "Demanding free press is your right", left, and "The media are your voice.
When you employ the strategy landing further away from the center of the map, you have to be prepared to move. Fortnite also used their Twitter profile to give additional clues to the players regarding the new season.
The Syrian army last week launched a wide-scale offensive on areas held by Syrian rebels and Islamic militants south of Damascus. Hezbollah-backed Al Akhbar news reported that the strikes occurred on Syrian bases used by the Iranian Revolutionary Guard.
He also referred to his background and said Congress is jealous as a person from humble background became the Prime Minister. For all political analyst and Leaders, it is quite simple to understand, and for non-political people, it is too simple.
Ant-Man And The Wasp Official Trailer: It Takes Two
Here's the new trailer for Ant-Man and the Wasp , which could very well be the most fun Marvel movie to date. Nonetheless, Marvel has now released a video with some other Avengers asking the same question.
Download the Windows 10 April Update ISO files
Windows Update ensures that your PC passes all of Microsoft's checks and won't run into any problems once the update is installed. Timeline is all about saving time and finding stuff faster by simply remembering the time frame when you were working on it.
Mueller gives list of questions to Trump's lawyers
Mr Manafort also reportedly offered to give a government-connected Russian billionaire a briefing about the campaign in July 2016. And he reportedly wants to ask Trump about what he knew about Russia's campaign to infiltrate the USA election via social media.
Tony Award nominations honour best of New York Broadway
Critic and audience favorite " Harry Potter and the Cursed Child " has garnered 10, along with the revival of " My Fair Lady ". GREEN I think we are approaching a moment when puppetry, magic and special animal effects will have to get a category.
John Kelly denies calling Trump an 'idiot'
For months, Kelly has been the target of near constant reports of a shakeup at the top of the White House staff. Kelly called the story "total BS" and said he is "committed to the president, his agenda and our country".
At least one killed in São Paulo tower block collapse
Fair-housing activists, on the other hand, argue that the area could offer affordable housing to tens of thousands of people. Firefighter Andre Elias told Globo TV that they expected to find more victims but did not know how many.
Life Habits To Make You Live Longer
He said it's important for people and policymakers to know the possible implications of lifestyle changes on life expectancy. Only eight percent of Americans are now following the healthy habits underlined in the study, research co-author Dr.
We have never attacked any country: PM
April 30, 2018-Buddha Jayanti is being observed across the country on Monday by organising various programmes. Lord Buddha's messages are as relevant today as 25 centuries ago when they were first uttered.
Spider believed to be world's oldest is dead
What makes her story remarkable is that until her death, this trapdoor spider was the oldest known spider in the world. Moreover, she-and trapdoor spiders generally-cannot up and move if their home is destroyed or too badly damaged.