European Shares Edge Higher After Fed's Hawkish Hike; Eyes Turn To BoE
All 12 FOMC members backed the move as markets now expect another 25-basis-point increase later this year.
- On Wednesday, the Federal Open Market Committee raised the federal funds rate target range by 25 basis points to 3.75-4%, marking the Fed's first rate-hike in three years with all 12 members voting unanimously.
- Appointed by President Donald Trump, Fed Chair Kevin Warsh led the unanimous vote as the Committee aims to bring inflation back down to the 2% target amid elevated price pressures.
- Central banks in the UAE and Bahrain also raised their main interest rates by 25 basis points on Wednesday, while Goldman Sachs expects the Federal Reserve to implement another rate hike in October.
- Traders see roughly 50% odds of another quarter-point Fed rate hike in October, according to CME Group's FedWatch tool, as Goldman Sachs described projections as a "two-hike baseline" for 2026.
- The White House called the decision "rather unfortunate" and not backed by a "particularly compelling economic case," as yields on 10-year U.S. government bonds recently crossed 5% amid mounting national debt.
13 Articles
13 Articles
What does the rate increase by the US Fed mean for the Chinese yuan?
Following the rate increase by the US Federal Reserve, some analysts argue Beijing may still push ahead with rate cuts this year to shore up flagging domestic growth, though a rate increase by the US typically limits room for monetary easing by China’s central bank. The Fed raised interest rates for the first time since 2023 on Wednesday, bringing the benchmark target range up 0.25 percentage points to between 3.75 and 4 per cent. The Federal Re…
(Seoul = Yonhap News) Reporter Lee Min-young = The KOSPI fluctuated on the 17th as the U.S. Federal Reserve (Fed) raised its benchmark interest rate overnight and hinted at a further hike...
Another Fed hike to follow? Goldman Sachs says US Federal Reserve could raise interest rates again in October
The US Federal Reserve raised its benchmark interest rate for the first time in 2023 to combat persistent inflation above its 2% target. Fed Chairman Kevin Warsh indicated an improving economy while other central banks are also increasing rates amidst global concerns.
Coverage Details
Bias Distribution
- 57% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
