The US Federal Reserve today announced an increase in interest rate by 25 basis points. Once the banking crisis began to worsen, the FOMC meeting in March was seen as a crucial occasion globally. Once banks began to fail and reveal a financial weakness in their books, there were rumblings of a Fed pause.
US stocks are seen rallying after the rate hike announcement on Wednesday with S&P 500 and Nasdaq Composite trading in green.
Prior to today’s hike, a 25 basis point rate increase was expected but later, after Fed Chief Powell seemed hawkish during the Congressional testimony in the first week of March, several industry experts believed that the Fed could raise rates by 50 basis points.
