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The annual consumer price index (CPI) came in at 3.3 percent last month, down 0.1 percentage point from April and unchanged on a monthly basis

Fed keeps interest rates steady, expects only one cut this year

The annual consumer price index (CPI) came in at 3.3 percent last month, down 0.1 percentage point from April and unchanged on a monthly basis

The US Federal Reserve left its key lending rate unchanged on Wednesday and penciled in just one rate cut this year, down from the three expected in March after inflation stalled in the first quarter.
The Fed voted unanimously to keep its benchmark interest rate between 5.25 and 5.50 percent, and said that "modest" progress had been made toward its long-term inflation target of two percent.
The announcement suggests that central bank officials remain wary about cutting rates too soon, despite consumer inflation data published earlier Wednesday, which pointed to a slowdown in the rate of price increases in May. Also read/watch - <a title="India's retail inflation eases to 4.75% in May; food inflation rises to 8.69%" href="https://www.editorji.com/business-news/economy/india-s-retail-inflation-eases-to-4-75-in-may-food-inflation-rises-to-8-69-1718197382923">India's retail inflation eases to 4.75% in May; food inflation rises to 8.69%</a>
The annual consumer price index (CPI) came in at 3.3 percent last month, down 0.1 percentage point from April and unchanged on a monthly basis, the Labor Department said. This was slightly below expectations.
Fed chair Jerome Powell welcomed the inflation data during a press conference on Wednesday, but added that the US central bank needs to see more "good inflation readings" before it gains sufficient confidence to consider cutting interest rates.

Interest rate hikes slow down price increases by raising the cost of borrowing from the bank, which dampens economic activity and weakens the labor market

Fed’s policy announcement: Key expectations 

<h2>Interest rate hikes slow down price increases by raising the cost of borrowing from the bank, which dampens economic activity and weakens the labor market</h2>

The Federal Reserve is expected to maintain its current high interest rates, which have reached a 22-year high, to combat inflation while preserving the strength of the robust U.S. economy.
Over the past year, the Fed implemented a swift series of rate increases, bringing its benchmark lending rate to a range of 5.25 to 5.50 percent, to return inflation to its target of two percent. Such rate hikes tend to increase the cost of borrowing, potentially tempering economic activity and influencing the job market.
<h3>Speculation of a December Rate Hike</h3>
The upcoming Federal Reserve meeting is widely anticipated to maintain the status quo, representing the second consecutive meeting with an unchanged decision. However, there is speculation, as reported by Bloomberg, about the possibility of a rate hike in December. The official rate announcement and accompanying statement will be released at 2 p.m. on Wednesday.
<h3>Factors in Consideration</h3>
Currently, the prevailing sentiment in the market favors a cautious approach by the Federal Reserve. Recent data has afforded the central bank the time to deliberate its next move. Despite a gradual slowdown in inflation, it remains above target, and the economy continues to exhibit robust growth, even with interest rates at their highest point since the early 2000s.
In addition to these economic considerations, policymakers will be closely monitoring the ongoing conflict in the Middle East, as it may exert pressure on the financial markets. Furthermore, the Fed will be taking into account other factors, such as the recent increase in yields on longer-term government bonds.
The Fed's key short-term rate primarily influences the rates offered by banks for borrowing. However, Treasury yields have a broad impact, affecting everything from mortgage rates to corporate and municipal bond yields. Given the tightening of financial conditions, analysts expect the Fed to maintain the status quo and keep rates steady.

While a July rate hike is now widely expected, questions remain about how much further the Fed will need to go this year to bring inflation back down to its long-term target of two percent 

US fed meeting: After a pause, economists expect Fed to hike interest rates again

While a July rate hike is now widely expected, questions remain about how much further the Fed will need to go this year to bring inflation back down to its long-term target of two percent&nbsp;

After pausing in June, the US Federal Reserve is widely expected to hike interest rates again on Wednesday, adopting its most restrictive monetary stance for 22 years despite recent signs of slowing inflation.
After 10 consecutive hikes in just over a year, the Fed halted its aggressive campaign of monetary tightening last month to give policymakers more time to assess the health of the US economy, and the impact of recent banking stresses on lending conditions.
In the weeks since, positive upgrades to economic growth and cooler inflation data have reinforced the likelihood that the Fed's rate-setting committee will vote for a quarter percentage-point hike on July 25-26.
According to economists surveyed by Bloomberg, the Federal Open Market Committee will raise rates a quarter point at its July 25-26 meeting to a range of 5.25% to 5.5%, the highest since 2001.&nbsp;
"If I had to bet, I would bet they would raise the Fed funds rate 25 basis points at the next meeting," Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics (PIIE), told AFP.
"The cooling of the economy is only happening slowly," Bank of America's chief US economist Michael Gapen wrote in a recent investor note.
"We think most committee members believe further rebalancing of supply and demand is needed to ensure disinflation will continue," he added, explaining why he expects another hike on Wednesday.
Futures traders now assign a probability of more than 99 percent that the Fed will hike its base rate by 25 basis points at its next meeting, according to CME Group.
While a July rate hike is now widely expected, questions remain about how much further the Fed will need to go this year to bring inflation back down to its long-term target of two percent.

Powell's comments come a week after the rate-setting Federal Open Market Committee (FOMC) voted to hold interest rates steady following 10 consecutive hikes in little more than a year

Fed Chair: may make sense to raise rates but at 'more moderate pace'

Powell's comments come a week after the rate-setting Federal Open Market Committee (FOMC) voted to hold interest rates steady following 10 consecutive hikes in little more than a year

The US Federal Reserve expects to continue raising interest rates but to slow down the pace of hikes, Fed chair Jerome Powell told a Congressional hearing Wednesday.
"Given how far we've come, it may make sense to move rates higher but to do so at a more moderate pace," he told the House Committee on Financial Services.
Powell's comments come a week after the rate-setting Federal Open Market Committee (FOMC) voted to hold interest rates steady following 10 consecutive hikes in little more than a year.
"Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year," he said Wednesday.
"We judged it prudent to hold the target range steady to allow the Committee to assess additional information and its implications for monetary policy," he added.
The Fed has already raised its benchmark lending rate by five percentage points since March 2022, from close to zero to a range between 5.0 and 5.25 percent.
But despite these aggressive moves, inflation remains "well above" the Fed's long-run target of two percent, Powell said Wednesday.
His scheduled appearance before Congress to discuss the Fed's semiannual report on monetary policy gives policymakers a chance to question the bank's most senior official at a time of high interest rates and slowing economic growth.
Alongside its interest rate decision on June 14, the Fed also published updated economic forecasts which suggested that another half percentage-point of increases may be needed this year.
The Fed also lifted its 2023 GDP growth projections to 1.0 percent from 0.4 percent in March.
Fed officials' median inflation expectations for the year nudged down slightly to 3.2 percent, while core inflation expectations, which excludes volatile food and energy prices, rose to an annual rate of 3.9 percent.
Futures traders are assigning a close-to 80 percent probability that the FOMC will vote to raise rates by a quarter percentage-point at its next meeting on July 25-26, according to data from CME Group.

Federal Reserve officials are set to begin a two-day policy meeting on Tuesday and the latest figures could allow room for a pause in interest rate hikes at the end of their gathering

Fed begins interest rate meeting as US consumer inflation eases

Federal Reserve officials are set to begin a two-day policy meeting on Tuesday and the latest figures could allow room for a pause in interest rate hikes at the end of their gathering

In an encouraging sign for policymakers, consumer inflation in the United States cooled for an 11th straight month on an annual basis in May.&nbsp;
As the federal reserve officials begin their two day meet on Tuesday, the latest figures could allow room for a pause in interest rate hikes at the end of their gathering.
While the US central bank has lifted the benchmark lending rate 10 times in a row since early last year to rein in inflation, it is widely anticipated to hold off this week on signs of cooling in the world's biggest economy.
Government figures released Tuesday show that the consumer price index (CPI), a key gauge of inflation, jumped 4.0 percent from a year ago in May, in line with analyst expectations and down from 4.9 percent in April.
This brings it to the lowest level in around two years, and less than half the peak rate of 9.1 percent in mid-2022.
"Today's report is good news for hard working families," President Joe Biden said in a statement. "It shows continued progress tackling inflation at the same time that unemployment remains at historic lows."
&nbsp;
- Cooling prices - &nbsp;
Analysts however caution that Fed policymakers are looking for a more certain trend of cooling growth before they end their cycle of rate hikes.
On a monthly basis, CPI rose 0.1 percent in May, decelerating from 0.4 percent in April, the Labor Department said.
Excluding the volatile food and energy components, consumer inflation was up 5.3 percent over the last 12 months.
"The index for shelter was the largest contributor to the monthly all items increase, followed by an increase in the index for used cars and trucks," the Labor Department said.
But while there was a "leap" in used vehicle prices last month, this was probably the last of a response to an earlier surge in auction prices, said Ian Shepherdson of Pantheon Macroeconomics.
"CPI used vehicle prices will fall over the summer, likely starting as soon as June," he said in a note. He added that rent growth is set to slow as well.
Meanwhile, new vehicle prices dipped on a monthly basis, on improving supply and "softer demand in the face of tightening credit conditions," he said.

To keep the inflation at 2%, the US Fed has increased the key funds rate by 0.25% points. Fed hinted that Wednesday's increase might be the final one

US Fed lifts interest rates again, signals potential pause

To keep the inflation at 2%, the US Fed has increased the key funds rate by 0.25% points. Fed hinted that Wednesday's increase might be the final one for the time being.&nbsp;

The US Federal Reserve raised its benchmark lending rate by 0.25% points. It has raised the rate for the tenth time in 14 months. This hike could be the last in the current cycle if the economy cools sufficiently.
The central bank embarked on an aggressive campaign of rate hikes in March last year to take aim at price increases. But more than a year later, inflation remains stubbornly above its long-term target of 2%.
The latest quarter-point increase lifts the target lending range to between 5% and 5.25%, the Fed confirmed in a statement, the highest in around 16 years.
Tighter credit conditions for households and businesses are likely to weigh on the economy, the Fed said, adding that the extent of the impact 'remains uncertain.'
The policy-setting Federal Open Market Committee's (FOMC) latest decision was in line with expectations, leading analysts and traders to scrutinize the statement for any shift in the Fed's guidance on future decisions.
In its statement, the Fed said it will 'take into account the cumulative tightening of monetary policy' and the lags with which policy impacts the economy, when 'determining' whether to hike rates again.
This marks a departure from the last rate announcement in which policymakers said they expected 'additional policy firming' could be needed to rein in inflation.
'Support for the 25 basis-point rate increase was very strong across the board,' Fed Chair Jerome Powell told a press conference after the decision was announced.
'A decision on a pause was not made today,' he said, later adding: 'People did talk about pausing but not so much at this meeting.'
Banking woes
After a relatively calm period for banks following crisis-level concerns in March, this week saw the reemergence of turbulence with the collapse of California-based lender First Republic.
The commercial bank's failure, the second-largest in US history was announced early Monday along with a sale to JPMorgan Chase, with regulators hoping that fears would finally be calmed.
But regional banks came under renewed pressure Tuesday, with some share prices declining by as much as 25% on concerns about the impact of interest-rate hikes on their financial health. Further declines were recorded on Wednesday.
Powell sounded a more upbeat note on regional banks' financial prospects, telling reporters that the resolution and sale of First Republic was "an important step toward drawing a line under that period of severe stress."
Tighter credit conditions&nbsp;
Powell also sounded positive on the US economy, telling reporters that the chance of avoiding a recession was 'more likely than that of having a recession,' due to the enduring strength of the labor market.
Minutes from the Fed's last meeting showed that the US central bank was forecasting a mild recession for later this year, suggesting differing views within the Federal Reserve on the outlook for the American economy.
The broader US economic data remains mixed but is showing some signs of softening, with growth slowing to an annualized rate of 1.1% in the first quarter.
The data on inflation paints a picture of slowing price increases in some areas and ongoing stubbornness in others, while figures on employment point to a weakening job market as the economy slows.
Fed officials have in recent weeks suggested that the tighter lending conditions after Silicon Valley Bank's (SVB) dramatic collapse in March could act like an additional rate hike and help bring down inflation.
Powell refused to be drawn on exactly how much of an impact tighter bank lending conditions could have on the Fed's decision-making.
But he conceded that, 'in principle we won't have to raise rates quite as high as we would have had this not happened.'

Reacting to the inflation woes, the U.S Fed is likely to go for another 25 basis point rate hike to 5.25%, which will be the highest since 2007

U.S. Fed's FOMC Meet: Powell likely to announce hike in interest rate

Reacting to the inflation woes, the U.S Fed is likely to go for another 25 basis point rate hike to 5.25%, which will be the highest since 2007

The Federal Reserve bank of the United States is expected to hike the interest rates by 25 basis points, to a range of 5% to 5.25%. This will be the highest rate since 2007.&nbsp;
This will be the 10th consecutive rate hike, if Jerome Powell announces raise in the interest rate. In the earlier FOMC meet that was held in March, the U.S FED hiked the interest rate by 25 basis points to 5% from 4.75%.&nbsp;
As per Financial Express, the upcoming Fed meeting is critical because markets may turn volatile if policymakers hike rates by 25 basis points as per expectations but do not signal a halt. The rate hike is widely expected due to the growing concerns of inflation. The U.S. commerce department in its report that was release on Friday, reported that the personal consumption expenditures price index excluding food and energy is up 0.3% from the previous month and 4.6% from a year earlier in March. Similarly, the Labour department's measure of employment expenses rose1.2% in the first quarter of 2023, up from 1% in the previous quarter.
Meanwhile, lawmakers led by Democrats have urged the Federal Reserve Bank to halt rate hikes to prevent too much damage to the economy.&nbsp;

In a statement, the Fed said recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation"

US Fed lifts key interest rate, voices banking sector concerns

In a statement, the Fed said recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation"

The US Federal Reserve raised its benchmark lending rate on Wednesday, as it sought to strike a balance between curbing high inflation and averting further upheaval in the commercial banking sector.
The quarter-point increase, which was in line with expectations, lifted their interest rate target to between 4.75 and 5 percent at the end of a two-day policy meeting, the Fed said in a statement.
The policy-setting Federal Open Market Committee (FOMC) added that "some additional policy firming may be appropriate" to get to a stance that is sufficiently restrictive to bring inflation down.
The latest increase was the same size as the central bank's previous rate decision in February, and marks its ninth straight rate hike.
The Fed also updated its economic projections on Wednesday, slightly lowering its 2023 GDP growth projections 2023 to 0.4 percent from 0.5 percent in December.

Federal Reserve is expected to raise rates by 25 basis points in its policy meeting this week versus a 50 basis points hike that was expected earlier prior to the collapse of Silicon Valley Bank and the following banking crisis

Federal Reserve's policy meeting: Here's what to expect 

Federal Reserve is expected to raise rates by 25 basis points in its policy meeting this week versus a 50 basis points hike that was expected earlier prior to the collapse of Silicon Valley Bank and the following banking crisis

This week's policy meeting of the Federal Reserve comes amid a challenging scenario in the U.S that stemmed from the collapse of Silicon Valley Bank and the following repurcussions.&nbsp;
In what is a crucial policy meeting, the Fed will weigh whether to continue raising interest rates to clamp down on inflation or to pause the rate hikes amid the market turmoil.&nbsp;
As per Bloomberg, before the collapse of Silicon Valley Bank and the resulting fallout, Fed policy makers were poised to raise rates by as much as 50 basis points after a string of data suggested the economy was much stronger than officials thought at the beginning of the year.&nbsp;
While there are those who believe that the Fed must pause on rate hikes given the macro envioronment, other are of the view that Fed may go ahead with a 25 basis points rate hike during this week's policy meet.&nbsp;
The Fed's decision follows a 50-basis-point rate hike from the European Central Bank on Thursday. President Christine Lagarde said the ECB remains committed to fighting inflation, while monitoring bank tensions closely.
Previously, the Fed announced four consecutive rate hikes, ranging from 25 bps to 75 bps.&nbsp;
The Federal Reserve officials are also expected to discuss the failure of the two U.S banks as well as the Credit Suisse crisis.
&nbsp;

The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases

Fed announces smaller rate hike, signals inflation fight not over

The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases

US's Federal Reserve slowed its pace of interest rate hikes Wednesday, tempering an aggressive campaign to rein in costs as inflation cools, but signaled the battle is not yet over.
The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75 percent.
"Inflation has eased somewhat but remains elevated," said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement.
While recent developments are encouraging, officials will need "substantially more evidence" to be confident that inflation is on a sustained downward path, Fed Chair Jerome Powell told a press briefing.
According to the FOMC statement, "the committee anticipates that ongoing increases in the target range will be appropriate" to bring inflation back to policymakers' two percent target.
The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases, lifting borrowing costs in hopes of dampening demand.

Many economists expect the U.S. to enter a recession in the coming months

Fed officials expect higher rates for some more time  

Another rate hike on Feb 1?

Many economists expect the U.S. to enter a recession in the coming months

As the battle against inflation remain in place, US central bankers do not expect it will be "appropriate" to start cutting interest rates this year.&nbsp;
While the Fed had slowed its pace of rate increases in December after several steep rate hikes, the minutes of the latest Federal Reserve policy meeting report shows officials were also concerned about any "misperception" of their moves.
The Fed has waged an all-out campaign to cool the world's biggest economy as inflation surged to a 40-year high last year, raising the benchmark lending rate seven times to ease demand.
This brought the rate to a range between 4.25 and 4.50 percent after the Fed's December meeting, the highest level since 2007.

While announcing the policy rate, Fed will also give guidance on inflation, GDP growth and unemployment numbers

Fed meeting will set the table for 2023; Raise rates again?

While announcing the policy rate, Fed will also give guidance on inflation, GDP growth and unemployment numbers

Investors are bracing for a week of swings in U.S. stocks ahead of key inflation data, the Federal Reserve's last policy meeting of 2022 and the final monthly options expiration of the year.
According to experts, Fed is widely expected to raise rates by 50 basis points on Wednesday at its last meeting of 2022, a step down from the 75 basis points hike in last few meetings.
Ahead of the Fed decision, all eyes are also on the United State's consumer price index report for November. Economists expect core annual inflation to ease to 6.1 percent in November, compared to rise of 6.3 percent in the previous month.
US markets ended positive on Monday ahead of Federal Reserve's meeting which begins today. Dow 30 ended at 34,005, up 528.58 points or 1.58 per cent while S&amp;P 500 closed at 3,990.56, up 56.18 points or 1.43 per cent. Nasdaq Composite 11,143.70, down 139.12 or 1.26 per cent.&nbsp;

Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent

US central banks signals shift to slower interest rate increases

Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent

The head of the US central bank has said authorities may start to ease its pace of interest rate hikes "as soon as" December, after racing to raise borrowing costs earlier this year.&nbsp;
He added that the full effects of the bank's moves are yet to be felt, but also warned that its policy will likely have to remain tight "for some time" to restore price stability.
Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent.
The central bank has raised the benchmark lending rate by 0.75 percentage points four consecutive times in recent months, out of six rate hikes this year in an aggressive effort to rein in prices.
The latest increase in November took the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008.

The minutes helped US stocks recover from an earlier swoon, while the dollar retreated

Most Fed officials see slower rate hike pace, minutes show

The minutes helped US stocks recover from an earlier swoon, while the dollar retreated

A majority of US Federal Reserve policymakers found that a slower pace of interest rate hikes would "likely soon be appropriate," according to the minutes.&nbsp;
The Fed has embarked on an aggressive path to cool demand and bring down prices as inflation in the world's biggest economy surged to the highest level in decades, raising the benchmark borrowing rate six times this year.
With inflation hovering around 7.7 percent, the latest policy meeting in early November produced a fourth consecutive three-quarter point interest rate hike, a major rise.
The minutes noted that the smaller hikes would give policymakers a chance to evaluate the impact of the succession of rate hikes. The central bank&rsquo;s next interest rate decision is Dec. 14.

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

Fed delivers another steep rate hike with more to come

Another rate hike is here; Fed hikes interest rates 75 basis points

Fed delivers big rate hike

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

In yet another decision, the US Federal Reserve delivered their fourth straight 75 basis-point interest rate with its move to cool red-hot inflation.
The unanimous decision lifts the target for the benchmark federal funds rate to a range of 3.75% to 4%, its highest level since 2008.
The policy-setting Federal Open Market Committee (FOMC) said more increases will be needed to tamp down rising prices but it will consider the impact on the economy when deciding on the pace of future moves -- opening the door to the possibility it will implement smaller steps in coming months.
Powell further said that the committee could begin discussing the possibility of slowing the aggressive pace of rate increases at the December meeting.

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
 

US Fed set for further steep rate hike as recession fears loom?

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
&nbsp;

The US Federal Reserve is pegged to make a fourth straight steep hike in the key interest rate this week as it battles surging costs, with its aggressive stance fueling expectations of a recession.
American households have been squeezed by soaring consumer prices, propelling economic issues to the top spot among voter concerns in upcoming midterm elections. Fed officials walk a tightrope to try and rein in prices while avoiding a downturn.
To raise borrowing costs and cool demand, the US central bank has already cranked up the benchmark lending rate five times this year, including three straight 0.75 percentage point raises.
But with persistently high inflation and a tight labor market supporting wages and spending, analysts say another 0.75 point hike is almost certain at central bankers' next policy meeting.
Further Fed hikes are also expected to dampen consumer and business spending, making it more attractive to save rather than spend.
Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth.

Making to the third consecutive increase, the Federal Reserve raised the key US interest rate again Wednesday and said more hikes are coming as it battles soaring prices . 
 

Federal Reserve raises key interest rate again

Federal Reserve rolled out another steep increase in the key US interest rate and said more hikes are coming as part of the battle to rein in soaring prices

Fed hikes rates again

It was the third consecutive increase of 0.75 percentage point by Fed reserve, continuing the forceful action to tamp down inflation that has surged to the highest in 40 years

Making to the third consecutive increase, the Federal Reserve raised the key US interest rate again Wednesday and said more hikes are coming as it battles soaring prices .&nbsp;
By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.
The officials also forecast that they will further raise their benchmark rate to roughly 4.4% by year's end, a full percentage point higher than they had forecast as recently as June.
The central bank's action Wednesday followed a government report last week that showed high costs spreading more broadly through the economy.
&nbsp;

Fed Rate Hike : The Federal Reserve raised rates by yet another 75 bps and kept the door open for a another hike. The markets however rallied sharply in the US despite the rate hike as Fed Chief Jerome Powell said.

Fed rate hike to massive market rally: All that happened overnight

Fed raises rates but Fed Chief Powell's comments power up the markets

<div class="hed-and-dek__f2fe7f0f">
<div class="abstract-item-text__d2d4dde8">Powell said pace of Fed rate increases will slow at some point</div>
</div>
<div class="content-well__5e77db71">
<div class="lede__8cfb9125"><address class="lede-byline__a846e17f">&nbsp;</address></div>
</div>

Fed Rate Hike : The Federal Reserve raised rates by yet another 75 bps and kept the door open for a another hike. The markets however rallied sharply in the US despite the rate hike as Fed Chief Jerome Powell&nbsp;said he does not think the US is currently in a recession. With 75 bps done again, it takes the cumulative June-July increase to 150 basis points, which is the steepest move up since the early 1980s.&nbsp;
The <a href="https://www.editorji.com/business-news/stock-market-live-udpates-sensex-nifty-crack-on-fed-rate-hike-fears-1650599602810">Fed's latest hike</a> lifts the benchmark short-term rate to its highest level since 2018. The central bank is betting that it can slow growth just enough to tame inflation yet not so much as to trigger a recession.
The Dow Jones Industrial Average closed 1.37% higher, or 436 points, to close at 32,197.
<a href="https://www.editorji.com/business-news/revealed-the-rbi-governor-s-salary-the-comparison-with-a-bank-ceo-is-shocking-1658988164613">Revealed: The RBI Governor's salary, the comparison with a bank CEO is shocking!&nbsp;</a>
The S&amp;P 500 gained 2.6%- 102 points higher at 4,023 while the technology heavy Nasdaq jumped by 4.06% - the most in over two years - to close 469 points higher at 12,032.

Fed rate Hike preview: Global markets are pricing in as traders brace for a historic hike from the Fed at its July 26-27 meeting after the scorching inflation print upwards of 9%.

Fed rate Hike preview: Expect a 100 bps hike after inflation report

Traders place their bets on a bazooka hike in interest rates but can it aim and attack inflation? 

Ready but not steady, Brace for a big rate hike

Bets show 50% chance of a 100 bps hike in rates by the US central bank in July&nbsp;

Inflation that is the highest since since 1981 and a potential rate hike of 100 bps that is unseen before.That is the headline that the <a href="https://www.editorji.com/business-news/markets/explained-falling-global-markets-and-what-is-the-new-gst-fear-1655447250569" target="_blank">global markets</a> are pricing in as traders brace for a historic hike from the Fed at its July 26-27 meeting after the scorching inflation print upwards of 9%. The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% in the US, highest in 40 years. This pushing traders to bet that Jerome Powell and his team at the Fed will push for a historic hike of 100 bps, something that the neighbouring nation Canada already shocked watchers with.&nbsp;
<a href="https://www.editorji.com/business-news/this-central-bank-announced-a-rate-hike-on-facebook-live-1657769516310" target="_blank">This central bank announced a rate hike on Facebook Live!</a> The Bank of Canada on Wednesday increased rates by a surprise full percentage point amid fears that decades-high price pressures are becoming entrenched.

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes.The Dow Jones Industrial Average jumped 303.70 points, or 1%, to close at 30,668.53. The S&amp;P 500 rose 1.46% to 3,789.99 while, the Nasdaq Composite gained 2.5% to end the day at 11,099.15.

What the Fed! US Markets rebound despite massive rate hike weak growth outlook

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes.

US markets snap 5 day losing streak after Fed rate hike

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes. The Dow Jones Industrial Average jumped 303.70 points, or 1%, to close at 30,668.53. The S&amp;P 500 rose 1.46% to 3,789.99 while, the Nasdaq Composite gained 2.5% to end the day at 11,099.15.

fed rate hike

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