Gold futures slumped Thursday, building on a retreat that started Wednesday afternoon as the Federal Reserve raised interest rates and sounded determined to hike again this year.
The Fed also issued updated economic forecasts that showed it foresees one additional rate increase this year to follow Wednesday's increase and an earlier rate hike in March. "Household spending has picked up in recent months, and business fixed investment has continued to expand". In a separate report from the Labor Department's, Consumer Price Index declined 0.1 percent in May.
The Fed revealed its plans to begin reducing its $4.2tn portfolio of Treasury bonds and mortgage-backed securities left over from the 2008 financial crisis. The Fed said it will have a balance sheet "below that seen in recent years but larger than before the financial crisis" because banks need for higher reserves at the Fed. If inflation doesn't pick up, he said, the Fed will find that raising rates and reducing its balance sheet is "going to be a hard maneuver". The move follows a record run of jobs growth in the U.S. that has driven the unemployment rate down to its lowest level in 16 years.
Despite the increase - the fourth since December 2015 - interest rates remain near historic lows, but the move will mean higher borrowing costs for consumers. Unemployment dipped to 4.3 percent in May, a 16-year low.
KEEPING SCORE: Germany's DAX fell 0.9 percent to 12,690 while the CAC40 of France sank 1.1 percent to 5,188.
They forecast USA economic growth of 2.2 percent in 2017, an increase from the previous projection in March.
"The third rate hike in seven months, coming not long after a relatively poor Q1 GDP print, suggests the Fed has become less data-dependent in its monetary policy decisions", Fitch Ratings Chief Economist Brian Coulton said.
The number of dissenting votes was taken as a sign by investors that the United Kingdom central bank is closer to ending the stimulus put in place after last year's Brexit referendum.
The exchange rates at MB Bank dropped from VNĐ22,750 to a dollar on Wednesday to VNĐ22,720 this morning.
Yellen would not comment on her future beyond her intention to serve out her term as chairwoman, which ends next February. Before becoming president, he often criticized both the Fed and Yellen.
Germany's DAX index is up 0.4 percent and Britain's FTSE 100 0.1 percent. The economy has now added new jobs for 80 straight months.