- Policies related to the Iran war, announced on May 29th, have led to consequences including spiking petrol prices and increased shipping costs, impacting the US market.
- Market volatility driven by geopolitical tensions, including attacks on Iran, has caused oil and gold prices to react, prompting the FED to consider its stance on inflation and interest rates.
- Geopolitical risks in the Middle East are causing market caution, leading to questions about the future path of monetary policy and oil market stability.
- Recession fears are causing a market decline, specifically impacting the Dow Jones Industrial Average.
Fed Raises Interest Rates by 25 Basis Points; Market Volatility Continues
- Reports
- 58
- Developments
- 13
- Repetition
- 84%
New informationRepeats or wire copies
What happened
The Federal Reserve raised the federal funds target range by 25 basis points to 3.75%–4.00% on September 16, marking the first increase since 2023 due to resilient economic activity and domestic spending. The central bank stated that inflation remains elevated, and the hike is intended to support a return to its 2% inflation goal. Global markets reacted to the move, with government bonds worldwide selling off sharply amid strong U.S. growth data and higher oil prices.
From fool.com, hindustantimes.com
Why it matters
The rate hikes introduce a more restrictive backdrop, leading to higher borrowing costs for consumers and businesses. This policy shift impacts growth-sensitive financial earnings and weighs on global equities. The market is currently pricing a 68.6% likelihood of a further quarter-point rate hike at the next Federal Reserve meeting.
Geopolitical risks in the Middle East and the ongoing market decline are factors analysts are monitoring alongside the rate hike decision.
From fool.com, hindustantimes.com
Who's involved
- FEDThe central bank responsible for setting monetary policy in the United States.
- Federal Open Market CommitteeThe committee of the United States Federal Reserve that sets policy.
- Jerome PowellThe president of the FED and leader of the central bank.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- NasdaqSpeculative
The exchange's tracked companies could face higher costs for loans and credit lines due to the rate hikes.
How it developed
Newest first. Tap a step to see who reported it.FED raises rates due to strong growth, weighing on global equities.1 source
FED confirms rate hikes are mid-cycle, boosting Nasdaq outlook.1 source
Healthcare stocks are emerging as a durable outperformer despite Fed rate hikes.1 source
- Following the Fed's meeting, market uncertainty cleared up, leading to a rally influenced by the rate hike decision, as covered by financial commentators.Sub-event
Fed-driven sell-off precedes market comeback on Nasdaq.1 source
Nasdaq rebounded after initial market struggle caused by Fed policy update.1 source
- Market volatility is underway as the likelihood of future FED rate hikes causes market decline, with tech euphoria offering some offset.Sub-event
Rate hike probability is rapidly climbing.1 source
Show 5 earlier steps
- Wells Fargo issued stock ratings (downgrade/upgrade) for Eagle Materials and Qualcomm amid Fed rate hike fears.Sub-event
- The Federal Reserve's hiking cycle is causing market pressure, leading Goldman Sachs to acquire a covered-call ETF.Sub-event
CPI report eased immediate pressure for the FED to raise interest rates.1 source
Fed rate hike indications cause stock market slips.1 source
Nasdaq declined due to fears of a Fed rate hike.1 source
Keep exploring
The entities involved
Related events
- Fears of Fed rate hikes are causing caution in the Taiwan Stock Market.
- Investor fears of rate hikes caused a market decline, driven by strong job gains and BLS data.
- The Federal Reserve raised interest rates after a three-year period.
- Rate hikes are affecting financial products and market returns due to actions by the FED.
- Inflation concerns are driving fears of Fed rate hikes, negatively impacting equity valuations.
Coverage
Newest first; wire copies grouped- fool.com
- hindustantimes.com
- morningstar.com
- financialcontent.com
- seekingalpha.com
- proactiveinvestors.com
- cnbc.com
- proactiveinvestors.com
- cnbc.com
- zerohedge.com
- australiannews.net
- trinidadtimes.com
- aol.com
- 247wallst.com
- aol.com
- 247wallst.com
- irishsun.com
- wibc.com
- postbulletin.com
- scmp.com
- dailycamera.com
- cp24.com
- livemint.com
- 247wallst.com
34 more outlets ran the same wire story
- bignewsnetwork.com
- japanherald.com
- sierraleonetimes.com
- bangladeshsun.com
- iranherald.com
- trinidadtimes.com
- milwaukeesun.com
- austinglobe.com
- hongkongherald.com
- chinanationalnews.com
- sandiegosun.com
- ohiostandard.com
- malaysiasun.com
- tucsonpost.com
- iraqsun.com
- caribbeanherald.com
- sanantoniopost.com
- vietnamtribune.com
- londonmercury.com
- batonrougepost.com
- australiannews.net
- pakistantelegraph.com
- taiwansun.com
- pittsburghstar.com
- russiaherald.com
- tennesseedaily.com
- nigeriasun.com
- torontotelegraph.com
- afghanistansun.com
- mexicostar.com
- nepalnational.com
- newzealandstar.com
- newyorktelegraph.com
- bignewsnetwork.com