The US Federal Reserve has announced another rate hike. As predicted, the growth amounted to 50 basis points. The previous value, put forward 4 times in a row, is 75 points.
According to Fed Chairman Jerome Powell, the rate at 2% inflation remains unchanged. Reducing rates is possible only with confidence in a steady decline in inflation.
American indices reacted negatively to the continuing high rate. Declines are seen in the Dow Jones, S&P500 and NASDAQ. Many experts see a recession in the US economy as the most likely scenario. A further increase in the rate will contribute to the exit from risky assets.
At the same time, analysts say that the market does not believe in the Fed’s intentions to hold the bar and counts on a more favorable scenario. Investors are betting on a February’s advance being as high as 25 basis points when officials are talking about a possible 75. The FedWatch tool shows the probability of seeing a rate of 4.5-4.75% — 62%, while before the press conference there was a value of 58.1%
