US Fed ‘less hawkish’ than expected; Singapore banks, net cash companies likely to outperform

GLOBAL financial markets may be heaving a sigh of relief for now as analysts believe that the US Federal Reserve has shown some restraint and appeared to be less hawkish than expected.

In a widely-expected move, the US Federal Reserve held interest rates steady overnight on Wednesday (May 1).

IG market analyst Yeap Jun Rong noted that the Fed appears to have shown a higher threshold for additional rate hikes despite the recent run in persistent inflation. Fed chair Jerome Powell said that further rate hikes remain “unlikely”.