The US federal Reserve's decided to increase 50 basis points

Global market fed news today

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The US Federal Reserve's hawkish outlook on interest rates has spooked markets around the world. Investors are now pricing in the possibility of a rate hike as early as next month, and that has sent shockwaves through global markets.

The Fed's comments have triggered a sell-off in stocks and commodities, as well as a flight to safety in government bonds. The US dollar has also soared to new highs against a basket of currencies.

All of this is a major shift in market sentiment from just a few weeks ago, when it was widely expected that the Fed would keep rates on hold until at least December.

The change in outlook has come as a surprise to many, and it has left investors scrambling to adjust their portfolios. The question now is whether or not the Fed will follow through on its hawkish rhetoric, or if this is just a case of posturing.

Either way, the markets are in for a volatile ride in the weeks ahead.

As the US Federal Reserve is expected to hike interest rates by 50 basis points, it has triggered a global market meltdown. Investors are now pricing in the possibility of a rate hike as early as next month. That has sent shockwaves through global markets that have spooked investors and sent stocks tumbling around the world.

The US central bank, which raised rates by 25 basis points last month, is likely to raise them again in March, according to economists. This will likely result in higher borrowing costs for consumers and companies.

In addition, rising bond yields have also been weighing on stocks as investors consider whether to buy fewer bonds or risk losing money if interest rates rise further.

Investors are concerned about whether or not the central bank will raise rates again in December, which would be the first time since 2006 that it has done so. The Fed, which decides on monetary policy by voting members of its board, ended its latest meeting with a decision to leave rates unchanged for now. However, the market consensus is that a rate hike is likely next month.

The Fed's decision was based on inflation being below its target range of 2% to 2½%. This is a sign that wages are not rising fast enough to keep up with rising prices for goods and services. Inflation may continue to fall below 2% in coming months as growth slows down in China and other emerging markets due to their reliance on exports and an appetite for imported goods."

In a statement released yesterday, the Fed indicated that it would begin raising its benchmark federal funds rate from 1% to 1.25% in October, with another quarter-point hike coming later in 2019. That news comes on the heels of three rate increases this year and a weaker economy, which has led many investors to predict that more hikes are likely to come in 2020.

Ahead of yesterday's announcement, stocks in major markets around the world fell sharply. The Dow Jones Industrial Average sank 2%, while Japanese stocks fell 4%. European markets also saw sharp declines, with London's FTSE 100 falling by 3%.

Despite these declines, there were signs that investors were not panicking too much just yet—the S&P 500 rose by 0.7% after hours, while gold prices rose almost 2%.

The Fed is set to raise its benchmark interest rate by 50 basis points, which would be its first increase since 2006. That's a big move for an organization that has stuck to a policy of "dovish" for the better part of a decade.

But it's not just investors who are worried about what a rate hike will mean for their portfolios; it's also governments around the world that are worried about how much more they'll have to spend on debt service when they're already struggling with budget deficits. That's why many countries have been scrambling to pass austerity measures or plan for future economic growth—and some countries have even been considering raising taxes on their citizens' income instead of cutting spending.

The US Fed raised its benchmark rate by 0.25% to a range of 2.25% to 2.5%. The Fed also indicated that it expects three more rate hikes this year and two more next year.

The move was seen as a sign that the US economy is improving, and it could be a precursor to further increases in short-term rates, which would put pressure on long-term rates. This would make it harder for investors to borrow money at lower rates and could also lead to higher borrowing costs for consumers and businesses.

In response, stocks fell sharply across all global markets, with European shares falling 1%. Asian shares were also lower, while the dollar firmed against other currencies as traders sought havens following the Fed's move.

The U.S. central bank raised its benchmark interest rate by 50 basis points to 1%. That's a big move for the Fed—and it comes just one day after Chairman Jerome Powell signaled that his outlook for economic growth and inflation had improved enough to make room for another rate increase.

Powell said that "recovery from this [economic] downturn remains incomplete" and that "policy needs to remain highly accommodative." He added that he expects inflation will pick up in coming months or quarters, but only gradually.

Powell also addressed concerns about rising household debt levels and a slowdown in wage growth, saying he's "not particularly alarmed" by either development because they're still within historical norms; however, he said there was reason to be concerned about a possible flattening out of those trends.

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