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FTSE 100 set to rise on Federal Reserve’s doveish stance on interest rates

Sumary of FTSE 100 set to rise on Federal Reserve’s doveish stance on interest rates:

  • T he FTSE 100 was set to rise today, clawing back some of yesterday losses despite concerns about another big raft of new rules restricting companies’ freedoms to pay dividends and bonuses…
  • Chairman Jay Powell made clear there will be no pullback from the easy money policy at the Fed until there was “substantial”..
  • However, Powell was only reiterating what he has been saying repeatedly since the launch of vaccines has been fuelling speculation of interest rate normalisation to curb a likely rise of inflation as the economy heals…
  • Bank governor Andrew Bailey post-announcement Press conference will be closely watched for the latest thinking on the economy…
  • Under the leaked plans due to be released later today, large companies will be barred from paying dividends if they don’t have the cash reserves to do so and executive bonuses will have to be clawed back if businesses make big mistakes with their accounts or allow fraud….

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