While the Fed messaging indicated no clear end to supportive policy measures such as bond-buying, signals of faster-than-expected rate hikes indicated concerns about inflation as the U.S. economy recovers from the COVID-19 pandemic.

MSCI’s broadest index of Asia-Pacific shares outside Japan was barely above water in morning trade after four sessions in the red, edging up 0.01%. Hong Kong’s Hang Seng index gained 0.53% and Seoul’s KOSPI was up 0.16%. Chinese blue chips swung between gains and losses, and were last down 0.1%

Japan’s Nikkei rose 0.31%.

Gold prices, which plunged following the Fed comments, edged higher but were still set for their worst week since March 2020. Spot gold was last up 0.56% at $1,783.21 per ounce.

“What is pretty obvious is that the inflation genie is starting to sneak out of the bottle, and that will be a major driver of interest rates in the short to medium term,” said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.

Adding to indications of a continued rebound in the world’s largest economy, new U.S. data on Thursday showed growing factory activity and easing layoffs, despite an unexpected rise in weekly jobless claims.

Hopes for a strong U.S. recovery pushed technology stocks higher on Thursday, lifting the Nasdaq Composite up 0.87%. But worries about inflation and higher rates weighed on the broader market, with the S&P 500 edging down 0.04%. The Dow Jones Industrial Average fell 0.62%

“While wage-price dynamics and inflation expectations are sticking to the Fed’s script, if they were to go off script even a bit, policymakers will need to pull forward when they begin and how quickly they normalise monetary policy,” Mark Zandi, an economist with Moody’s Analytics, said in a note. “While this is a tricky balance the Fed must ultimately manage in every business cycle, it is happening much earlier in this one.”

Higher expectations of inflation continued to lift long-dated U.S. Treasury yields. Benchmark 10-year notes yielded 1.5226%, up from a close of 1.511% on Thursday.

The 30-year bond last yielded 2.1105%.

The dollar, which soared to more than two-month highs following the Fed meeting, gave up some ground on Friday. The dollar index was 0.04% lower at 91.843. It was flat against the yen at 110.20, and the euro gained 0.08% to 1.1916%.

The relatively strong dollar hit oil prices after they touched their highest level in years a day earlier, as concerns over demand and new Iranian supply also weighed.

Global benchmark Brent crude was down 0.7% at $72.57 a barrel and U.S. West Texas Intermediate crude shed 0.65% to $70.58.