Forex news: The latest on the Fed’s decision to hike interest rates for the third time this week
The Federal Reserve will increase interest rates by 0.25 percent for the next three weeks, the central bank announced on Friday, bringing its total move to 0.5 percent in the last week.
The move comes amid ongoing concerns about global inflation, with the global economy growing at a near-record pace of 0.8 percent this year, according to the International Monetary Fund.
The central bank said it was also considering a rate hike in the U.S.
The Fed’s next rate increase is expected to come next week, when it will consider whether to keep its current policy of zero interest rates, which has been in place since the financial crisis.
The central bank’s decision comes after a week of volatility and volatility in the global currency markets, with global bond yields reaching a new all-time high.
The Fed said it would raise rates for a fourth time this year on Thursday.
The market reacted with mixed reactions to the Fed decision, with some investors pointing to its importance and others pointing to the possibility of a global economic collapse.
“What the Fed does with their 0.75 percent interest rate hike is basically tell us what they think about what the economy is doing, but the market does not want to hear that,” said Charles Griswold, senior economist at BMO Capital Markets.
“So it’s an odd way to go about it.”
The U.K. stock market and the dollar traded in the negative.
The Dow Jones Industrial Average fell 1.8% to 23,069.23, while the S&P 500 lost 0.6% to 2,936.17 and the Nasdaq Composite lost 1.7% to 4,737.75.
The Nasdaq was up 0.7%.
The Federal Reserve’s decision will have a lasting impact on the global financial system.
In a note to clients, the bank said the U and Japanese yen will weaken against the U, and that the European Central Bank will move toward raising interest rates.
The Japanese yen was trading around 105 yen for the dollar on Friday.
The dollar strengthened to 94 yen at 112.40 yen.
“I think this is an unprecedented move that could have a huge impact on global financial markets,” said Michael B. Shaver, chief investment strategist at U.P. Morgan Securities in New York.
“It will not be easy to recover from this shock to the global economic system.”
Read more: The U.N. warns that the financial system could be in danger of collapseThe Fed raised rates for its first time since 2008 last month.
The decision marked the third round of rate hikes since the global crisis, and it was the most significant increase in the central banks history.
The last round was the first since 2008, and the Fed said the previous hike in December was temporary and that it would continue to make the monetary policy decision.
The Federal Open Market Committee, the government’s central bank, has said it will keep interest rates low and keep rates near zero as long as the economy remains healthy.
It will also keep interest payments near zero, and will keep a close watch on the economy’s growth.
The latest rate hike, which came on top of a January hike of 0,000 basis points, was the largest since 2008.
The U, Japanese and European markets were closed Friday as a result of the announcement.
The dollar rose against other major currencies.
The yen rose against the dollar to 102.11 yen against the greenback from 102.09 yen at 11:57 a.m.
The euro was down 0.2 percent against the pound at $1.2722.
The Japanese yen, which is considered the currency of convenience, fell 0.3 percent against a basket of currencies.