US Fed Interest Rates Hike: The US central bank, the Federal Reserve, has decided to increase its interest rates once again, as expected. This time the US Fed Reserve has increased its interest rates by 0.50 percent. Let us tell you that after the reduction in US Inflation in America, the Fed Reserve has reduced its aggressive stance of increasing its interest rates this time. Last time in the month of November, the bank had increased the interest rate by 0.75 percent, but this time this rate has been increased by only 0.50 percent (Federal Reserve Rate Hike).
Fed Reserve will continue to increase the interest rate even further
The US Fed Reserve has announced this hike on Wednesday night. Along with the announcement of this hike, the Fed Reserve Hike also said that in order to reduce inflation in the year 2023, the Fed Reserve will continue to increase the interest rates even further. By the end of the year 2023, Fed Reserve can register an increase in interest rates up to 0.75 percent. Significantly, even before this, the US Fed Reserve has increased its interest rates four times in a row. After the Fed Reserve, there is also a meeting of the European Central Bank and the Bank of England today. In such a situation, now everyone’s eyes are on whether these central banks decide to increase their interest rates in these meetings or not.
Interest rate reached the highest level of 15 years
Let us tell you that after the increase in the Fed Reserve’s interest rate by 0.50 percent, its target rate has reached between 4.25 percent to 4.50 percent. This interest rate is the highest in the last 15 years i.e. after 2007. If an increase of 0.75 percent is done by the Fed Reserve in the year 2023, then it will be more than 5 percent. Most experts believe that the Fed Reserve will not consider reducing the interest rate until the year 2023, but interest rates are likely to be reduced from the year 2024. It is worth noting that at present the unemployment rate in America has reached 3.5 percent. Along with this, the country’s GDP is likely to be 0.50 per cent in the year 2023, which is much lower than the estimate made in September. In September 2022, it was believed that the country’s GDP could remain up to 1.2 percent.
The decline seen in the US market
Let us tell you that the impact of the Fed Reserve’s decision to increase the interest rate can be clearly seen on the American stock market. On Wednesday, the Dow Jones registered a decline of up to 0.42 percent. After the increase in Fed Reserve (US Fed Hikes Interest Rates Hike), a decline can also be seen in the Indian stock market on Thursday.
Negative effect will also be seen on the Indian market
The effect of the increase in the interest rates of the Federal Reserve of America will be seen on the whole world including America. There is a possibility of its negative impact on the Indian market as well. Today the market is likely to open with a downside. Along with this, there is a possibility of a fall in the rupee. Today, the effect of Fed Reserve’s increase in interest rates is likely to be seen on the Asian markets as well.