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CCTV Script 04/05/17

This is the script of CNBC's news report for China's CCTV on May 4, Thursday.

Welcome to CNBC Business Daily, I'm Qian Chen.

As expected, the Fed gave a nod to a temporary weakness in the economy and signaled it is still moving ahead with policy tightening.

First-quarter growth grew at a weak 0.7 percent, but economists expect a bounce back and some see growth over 3 percent. The Fed acknowledged the softness in its statement.

It said that the Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around 2 percent over the medium term. The Fed also noted that inflation edged lower in March but that it expects it to stabilize.

Fed funds futures indicated just about a 67 percent chance of a June interest-rate hike on Tuesday, but then up about 9 percentage points after the announcement, according to CME Group.

[Michael Kelly, Managing Director, Pinebridge Investment] "They are pretty much a auto-pilot to go again in June ... But the US numbers which were soft, are beginning to strengthen, and we think they will through June, and thats what the Fed is counting on and as it looks as long as remodely like that, they are going in June."

The hawkish tone seen in the statement pushed dollar higher, touching its 6-week high against the Japanese yen in the intraday trading while Euro against the greenback slipped below the key level of 1.09.

Gold prices took a punch and slumped to 1238 dollars an ounce. Meanwhile, Treasury yields rose after the Fed's announcement. The 10-year edged higher to 2.31 percent.

Stocks were mixed. The Dow turned positive after the announcement, thanks to the boost of financial stocks, but both S&P 500 and Nasdaq ended lower.

When CNBC spoke to Chad Morganlander, Portfolio Manager of Washington Crossing Advisors, he sees 3 more rate hikes over the next 9 months, and believes that would help push dollar higher.

[Chad Morganlander, Portfolio Manager, Washington Crossing Advisors] "We are a little bit more optimistic. We thank 2.5% GDP number is toughly in the cards for 2017, we think the dollar will continue to moderately create value by roughly 2-3%, and the long-end yield curve, and thats the real story, we believe will flaten substentially and perhaps the 10-year yield will go to roughly about 2% by the end of the year."

The statement did not mention changes to the Fed's balance sheet, which officials were expected to have discussed at length during the two-day meeting.

And investors are also watching closely on the upcoming nonfarm job report, which will be released on Friday.

CNBC's Qian Chen, reporting from Singapore

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