Asia-Pacific markets closed mixed on Tuesday, after Federal Reserve Chair Jerome Powell indicated the recent outsized cuts enacted by the U.S.
central bank should not be interpreted as a sign that future moves will be as aggressive.
"If the economy performs as expected, that would mean two more rate cuts this year, a total of 50 [basis points] more.
"
The current federal funds rate stands at 4.75%-5%, with the expected additional 50 basis points in cuts set to take the Fed's benchmark interest rate to 4.
25%-4.5% at the end of 2024.
In Asia, traders will focus on the Bank of Japan's third quarter Tankan survey, which measures the level of business optimism among large Japanese companies.
As such, the member said, "the Bank will not raise its policy interest rate when financial and capital markets are unstable.
"..
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