The Fed Restarts Rate Hikes: The US Dollar Strengthens, Stocks and Bonds Face Pressure, Crypto Keeps Rising—What Else Is the Market Worried About?
At 2:00 a.m. on September 17, Beijing time, the Federal Reserve announced a 25-basis-point rate hike, raising the target range for the federal funds rate to 3.75%–4.00%, the first hike since 2023. The decision was passed unanimously, and the latest projections also point to the possibility of further hikes within the year.
At 2:30 a.m., Chairman Wosch emphasized at the press conference that inflation remains persistently high. Summer data did not show any clear improvement in underlying inflation trends, and the Federal Reserve will continue to focus on controlling inflation.
Two sets of messages answered two questions: how much this time, and whether there will be more hikes next. After the 25-basis-point move takes effect, the market still needs to assess the future level of interest rates and how long they will remain elevated.