Emerging market assets fall as Powell suggests US inflation intensifies.

Federal Reserve Chairman Powell's statement that import tariffs may push prices higher and the potential for sustained impact on inflation has led to consecutive second day drops in emerging market currencies and stocks. Previously, the Fed kept interest rates unchanged and reiterated expectations of two rate cuts in 2025, leading to a simultaneous drop in assets, but falling again due to comments about tariffs. MSCI's emerging market currency index closed down 0.1%, while a similar stock index closed down 0.3%.