Fed poised to raise rates for first time since 2023
Federal Reserve expected to raise rates for the first time since 2023.
The Federal Reserve is tipped to raise interest rates for the first time since 2023 when it announces its decision this week. President Trump has been pushing the Fed to keep rates low to spur economic growth.
Government bond yields have climbed to multi-decade highs, with the 10-year Treasury note now above 5 percent, a level not seen since 2007. Investors worry this surge reflects persistent inflation that the Fed cannot easily control.
Robust jobs creation and stubbornly high prices have convinced the Fed that a rate rise is needed. Oil prices fell Wednesday, which lifted global stock markets.
The Fed's guidance on future policy is what markets are really watching now.
- 25 basis points
- Expected rate increase
- above 5 percent
- 10-year Treasury yield
- around 20 percent
- Oil price surge this month
- above 100 dollars per barrel
- Crude oil level
Why it mattersFed rate moves ripple through global markets and shape expectations for other central banks, affecting investment returns and savings worldwide.
AustraliaAustralian bond yields and borrowing costs tend to follow US movements, and a Fed hike could put upward pressure on Australian interest rates and ASX returns.
Corroborated bysmh.com.au
✓ Claims checked against the source. checked 8 d ago
