Fed rate hike

The Federal Reserve is expected to raise interest rates by another 0.75 percentage points Wednesday, as part of its ongoing effort to fight inflation.

"I have been in the camp of steadier and slower [rate increases], to begin to see how those effects from a lag will unfold," George said last month. "That suggests we may have to keep at this for a while." But a handful of Democrats have begun to challenge the central bank's approach, warning that aggressive rates hikes could put millions of people out of work. As a result, the Fed may have to tap the brakes harder, for longer, than it otherwise would. "I think we're in for a rough six or eight months," Woods said. "When inflation's been running at 6, 7, 8% and the target is 2%, it's going to take a while." It's possible that Wednesday's rate hike will be the last super-sized increase for a while. But consumers, still flush with cash saved up early in the pandemic, continue to spend money. Markets will be on the lookout for any signal that the Fed plans to scale back to a smaller increase in December. That's the most aggressive string of rate hikes in decades, but so far it's done little to bring prices under control. "Interest rates have risen at a whiplash-inducing speed, and we're not done yet," said Greg McBride, chief financial analyst at Bankrate. The better known consumer price index shows prices rising even faster, at an annual rate of 8.2%.

As it battles inflation that remains at four-decade highs, the Federal Reserve is expected to hike its key interest rate another 0.75% Wednesday.

"This forces the Fed to continue its aggressive approach on interest rates." "For more than a decade, from 1966 to 1979, policymakers failed to do what was necessary to contain inflation because they shrank from the immediate consequences of restrictive policy," Summers wrote. Wages have been increasing alongside inflation, though not enough to keep up with the price increases. This interest rate, known as the federal funds rate, affects the cost of borrowing and the pace of investment throughout the economy. Treasury Secretary Larry Summers called on Fed Chair Jerome Powell to maintain an aggressive stance on rate hikes, even if it causes job losses in the short term. The central bank has been bedeviled by stubbornly high inflation readings even as other factors that had been influencing price increases, like higher gas and energy prices, have cooled off. Even stripped of those two items, whose price swings tend to be more volatile, the index saw its largest increase since 1982. is now $32.46 as of September, up from $28.09 in September 2019. Summers predicted unemployment would have to rise above 4.4% to get inflation under control. unemployment rate currently stands at 3.5%. Food and energy price increases were higher. The Federal Open Market Committee met Tuesday to set the latest rate increase; it is expected to be announced Wednesday afternoon.

The Federal Reserve is poised to hike interest rates for the sixth time this year to fight inflation. The aggressive hikes risk igniting a recession.

] [USA TODAY economics reporter Paul Davidson](https://www.usatoday.com/staff/2646662001/paul-davidson/) will cover the event in person. [labor market remains strong](https://www.usatoday.com/story/money/2022/10/07/september-jobs-report-unemployment-inflation-interest-rates/8195709001/). ] [S&P 500 performance during the past five rate hikes] [In all but one of the past five Fed rate hikes, the S&P 500 closed at least 1% higher](https://www.usatoday.com/in-depth/graphics/2022/10/31/fed-markets-how-sp-500-moved-each-rate-increase/10614448002/). But [economists ](https://www.usatoday.com/story/money/2022/10/27/recession-looming-some-predict-higher-severity-than-expected/10600959002/)don’t expect that to be the case in 2023, especially if the Fed continues lifting rates at an aggressive pace. Banks pass on these higher rates to consumers by making it more expensive for them to get a mortgage, a loan, pay off credit card debt and more. [Fed rate hike history 2022] [Here's when the Federal Reserve hiked its short-term interest rate this year, and the amount by which it raised that rate.] [March 17: 0.25 percentage point] [May 5: 0.50 percentage point] [June 16: 0.75 percentage point] [July 28: 0.75 percentage point] [September 22: 0.75 percentage point] [What time is Powell’s press conference?] [Fed Chairman Jerome Powell’s media conference will begin at 2:30 p.m. The fed funds rate is the interest rate banks charge to lend money to one another. [Fed fund rates today ] [Ahead of the Fed's upcoming rate hike, the fed fund rate ranges between 3% to 3.75%. The Dow Jones Industrial Average was down by 0.5% while the S&P 500 and Nasdaq were down by 0.7% as of 10:30 a.m. Leading up to the decision, the index was higher but fell immediately after the Fed announced the 75-point hike. - The central bank is boosting rates to curb inflation, which hovers near a 40-year high. That increase will have a direct impact on

SINGAPORE shares closed higher on Wednesday (Nov 2) on late buying after spending all day underwater following overnight losses on Wall Street.

There are many reasons for the Federal Reserve chairman to maintain a hawkish stance on rate hikes.

The committee’s policy statement is out at 2 p.m. That would mean the sixth rate hike of 2022 and fourth-straight 0.75 percentage-point bump. Markets won’t get their much-anticipated all-clear signal from the Fed.

SINGAPORE - Singapore shares closed higher on Wednesday on late buying, after spending all day underwater following overnight losses on Wall Street.

Venture Corp, which is set to release its third-quarter scorecard on Friday, was Maybank Securities’ top pick in Singapore’s tech sector amid a challenging backdrop. This is because the robust numbers could provide the Fed with more ammunition to stay on a hawkish course, said Phillip Securities in a note on Wednesday. The Straits Times Index advanced 10.63 points or 0.3 per cent to 3,141.13 to log its seventh straight day of gains.

Shares in the Asia-Pacific traded mostly higher on Wednesday as the Fed's upcoming decision comes into focus.

[rallied](https://twitter.com/CNBCi/status/1587361813695381506) Tuesday after unconfirmed reports circulated about a committee being formed for reopening discussions in China. [SJM Holdings](/quotes/880-HK/) shot up 8.71%. stocks slipped overnight](https://www.cnbc.com/2022/10/31/stock-futures-flat-as-indexes-exit-winning-month-and-investors-look-to-fed-meeting.html) as investors digested economic data ahead of an expected rate hike from the Fed later Wednesday. "At this point, with inflation surprising as much as it has already, the Fed will want to see clear signs of reversal in wage growth before pivoting. West Texas Intermediate](/quotes/@CL.1/) rose 1.28% to $89.67 per barrel. [Brent crude futures](/quotes/@LCO.1/) gained $1.31, or 1.46%, to stand at $95.87 per barrel, while [U.S. However, the Fed will need several months of data to go its way before changing course. "A Fed pause is not the same as a pivot. [Nikkei 225](/quotes/.N225/) and the Topix were about flat at 27,663.39 and 1,940.46, respectively. The [Kospi](/quotes/.KS11/) was fractionally higher at 2,336.87. [S&P/ASX 200](/quotes/.AXJO/) traded 0.14% higher to 6,986.70. This marked the second day of sharp gains for the index, which Goldman Sachs Strategist Timothy Moe attributed to a combination of two factors.

Investing.com-- Most Asian stock markets rose slightly on Wednesday as investors hunkered down ahead of a Federal Reserve interest rate decision, while Chinese ...

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WASHINGTON: US central bankers are expected to announce another steep interest rate hike on Wednesday (Nov 2) as they try to prevent soaring inflation from ...

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The Federal Reserve delivered its latest monetary policy announcement, with the central bank hiking rates by 75 basis points, or 0.75 percentage point.

The strategist said Powell will have to be careful in how he crafts the statement because he could raise market expectations for a less aggressive Fed. "Rate hikes from here will be more cognizant of the new economic environment we're in with respect to the much higher cost of capital and economic clouds that are circling," he said. As in, Wall Street will be looking for the central bank to "step down" from its current tightening path. "Will there be discussion about the potential for 50 basis points in December? We're somewhat surprised to see the 'soft pivot' in the statement itself and we expect that Powell will double down on this narrative at the press conference. "From a cost benefit perspective, it doesn't do as much damage to the asset markets and to the broader economy… "We've always said it was going to be difficult, but to the extent rates have to go higher and stay higher for longer it becomes harder to see the path. ... And that's why I've said at the last two press conferences that at some point it will be important to slow the pace of increases. The Fed raised its target rate by three-quartes of a point Wednesday afternoon. The Fed's outlook may be less one-sided, but reaffirming its bias to fight hard against inflation – and the 2% inflation target – is likely to remain a market headwind until inflation conditions improve." The level of interest rates will also be higher than previously expected, he said. "Chairman Powell made it clear that his bias is to err on the side of over-tightening rather than under-tightening in order to avoid the risk of inflation becoming entrenched," said Yung-Yu Ma, chief investment strategist, BMO Wealth Management.

As the Fed fights inflation with another 0.75 percentage point hike, the debt costs for credit cards, loans, and auto financing will continue to rise.

- Credit cards: The annual percentage rate (APR) on credit cards is likely to climb to an average of 19% from 18.16% as of late September, according to Greg McBride, Bankrate's chief financial analyst. That's up from a 1 in 3 chance, according to a survey conducted at the beginning of the year. With today's rate increase, the benchmark federal funds rate is a range of 3.75% to 4%. Currently, the average interest rates on these loans is - Auto financing: Expect increased interest costs for new auto loans, or auto loans with variable-rate financing. [closer to 7.3%](https://www.bankrate.com/home-equity/current-interest-rates/), but they could climb to an average of 8%. But increased interest rates discourage economic growth, which can trigger a recession in which many people already dealing with rising costs lose their jobs. Fed Chair Jerome Powell has reaffirmed his commitment to lowering inflation with continued rate hikes in recent months. Ultimately, inflation affects people's spending power more directly than interest rate hikes do. [projects a 100% chance of a recession](https://www.bloomberg.com/news/articles/2022-10-17/forecast-for-us-recession-within-year-hits-100-in-blow-to-biden?sref=WD5fEjzY) by Oct. [the probability of a recession over the next year is now 60%](https://www.bloomberg.com/news/articles/2022-10-14/odds-of-us-recession-within-next-year-climb-to-60-survey-shows?sref=WD5fEjzY), up from 50% a month earlier. [to lift its benchmark rate even higher](https://www.bloomberg.com/news/articles/2022-10-30/goldman-sachs-now-sees-fed-rates-peaking-at-5-in-march?sref=WD5fEjzY), to a range of 4.75% to 5% by March 2023.

The Federal Reserve raised interest rates by another 0.75 percentage points Wednesday, as part of its ongoing effort to fight inflation.

"I have been in the camp of steadier and slower [rate increases], to begin to see how those effects from a lag will unfold," George said last month. "That suggests we may have to keep at this for a while." But a handful of Democrats have begun to challenge the central bank's approach, warning that aggressive rates hikes could put millions of people out of work. As a result, the Fed may have to tap the brakes harder, for longer, than it otherwise would. "I think we're in for a rough six or eight months," Woods said. "When inflation's been running at 6, 7, 8% and the target is 2%, it's going to take a while." It's possible that Wednesday's rate hike will be the last super-sized increase for a while. But consumers, still flush with cash saved up early in the pandemic, continue to spend money. That's the most aggressive string of rate hikes in decades, but so far it's done little to bring prices under control. "Interest rates have risen at a whiplash-inducing speed, and we're not done yet," said Greg McBride, chief financial analyst at Bankrate. The better known consumer price index shows prices rising even faster, at an annual rate of 8.2%. The central bank raised its benchmark interest rate by 3/4 of a percentage point.

Federal Reserve Board Chairman Jerome Powell listens with Treasury Secretary Janet Yellen during a meeting of the Financial Stability Oversight Council last ...

The economy grew at a 2.6% annual rate in the third quarter. That would bring the peak Fed funds rate in a range of 4.5%-4.75%. If there is a recession, economists warn the Fed won’t likely ride the rescue. Some economists are now penciling in a “terminal” rate of 5% or higher. Economists say the eventual size of the move will depend on the economic data. The Federal Reserve on Wednesday approved the fourth straight jumbo increase in a key U.S.

It continues to battle the worst outbreak of inflation in 40 years. Read more at straitstimes.com.

The Fed’s statement “was a lot more definite about a possible downshift than I thought it would be. The US central bank has raised rates at its last six meetings beginning in March, marking the fastest round of increases since former Fed Chair Paul Volcker’s fight to control inflation in the 1970s and 1980s. Yields on US Treasury securities, which had dropped sharply after the Fed statement was released, turned higher. Rate futures markets now imply about 50/50 odds of rates climbing to 5 per cent or higher next year. “Ongoing increases in the target range will be appropriate,” the FOMC said at the end of a two-day meeting. The new language in the US central bank’s latest policy statement took note of the still-evolving impact that its rapid pace of rate hikes has set in motion, and a desire to hone in on a level for the federal funds rate “sufficiently restrictive to return inflation to 2 per cent over time.”

The Fed's latest increase brings the federal funds rate – which acts as a benchmark for everything including business loans, credit card and mortgage rates – to ...

Last month, the European Central Bank also [increased its cost of borrowing](https://www.theguardian.com/business/2022/oct/27/european-central-bank-hikes-interest-rate-recession-fears-ecb-eurozone-inflation) to tackle inflation, now at a record high of 10.7%. It is expected to weaken as companies count the cost of higher borrowing. While we’re seeing early signs of Fed-driven demand destruction, it’s affecting only certain sectors of the labor market.” In September, the costs of goods and services were Powell has indicated that the Fed expects rates will reach 4.4% by the end of the year and start coming down until 2024. “We’ve always said it was going to be difficult. And incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected,” he said. Fed officials had expected inflation to decline this year. [over 10%](https://www.theguardian.com/business/2022/oct/19/uk-inflation-rises-energy-bills-food-prices-september-cost-of-living-crisis) in the UK and on Thursday the Bank of England is expected to raise its base rate [by as much as one percentage point to 3.25%](https://www.theguardian.com/business/2022/oct/20/interest-rates-unlikely-to-rise-5-bank-of-england-ben-broadbent). He said the Fed would, at some point, slow the pace of rate rises but warned it was “very premature to think about pausing”. I don’t think we’ve overtightened,” said Powell. The Fed chair, Jerome Powell, said there were “no grounds for complacency” but acknowledged that officials were considering the pace of rate rises as they assess their impact on the wider economy.

Dow Jones Industrial Average falls 1.6 per cent to 32147.76, amid Fed chairman's hawkish outlook. Read more at straitstimes.com.

“It was the realization rates would have to go higher.” The Fed statement “had something for everyone,” said a Wells Fargo note. The US central bank, as expected, raised the benchmark borrowing rate by 0.75 percentage point. But major indices tumbled into the red during the press conference when Powell said it was “very premature” to discuss pausing rate increases and that he didn’t think the body had “overtightened.” But markets cheered a tweak in the Fed’s language to the effect that the US central bank would assess the “cumulative” effect of its monetary policy moves. “But the press conference favoured the hawks.”

The Federal Reserve hiked its target interest rate by three quarters of a percentage point, as expected. Chair Jerome Powell said that the Fed could start ...

“The onus is on him to stay the course.” But Rieder said this might be the last rate hike of this magnitude. But investors hope Fed chair Jerome Powell will suggest that he central bank will soon “pivot” and slow its pace of rate hikes.

The Federal Reserve raised interest rates by another 0.75 percentage points Wednesday, as part of its ongoing effort to fight inflation. The big question is ...

"I have been in the camp of steadier and slower [rate increases], to begin to see how those effects from a lag will unfold," George said last month. But a handful of Democrats have begun to challenge the central bank's approach, warning that aggressive rates hikes could put millions of people out of work. "That suggests we may have to keep at this for a while." As a result, the Fed may have to tap the brakes harder, for longer, than it otherwise would. "I think we're in for a rough six or eight months," Woods said. "When inflation's been running at 6, 7, 8% and the target is 2%, it's going to take a while." It's possible that Wednesday's rate hike will be the last super-sized increase for a while. But consumers, still flush with cash saved up early in the pandemic, continue to spend money. That's the most aggressive string of rate hikes in decades, but so far it's done little to bring prices under control. "Interest rates have risen at a whiplash-inducing speed, and we're not done yet," said Greg McBride, chief financial analyst at Bankrate. The better known consumer price index shows prices rising even faster, at an annual rate of 8.2%. The central bank raised its benchmark interest rate by 3/4 of a percentage point.

It continues to battle the worst outbreak of inflation in 40 years. Read more at straitstimes.com.

The Fed’s statement “was a lot more definite about a possible downshift than I thought it would be. The US central bank has raised rates at its last six meetings beginning in March, marking the fastest round of increases since former Fed Chair Paul Volcker’s fight to control inflation in the 1970s and 1980s. Yields on US Treasury securities, which had dropped sharply after the Fed statement was released, turned higher. Rate futures markets now imply about 50/50 odds of rates climbing to 5 per cent or higher next year. “Ongoing increases in the target range will be appropriate,” the FOMC said at the end of a two-day meeting. The new language in the US central bank’s latest policy statement took note of the still-evolving impact that its rapid pace of rate hikes has set in motion, and a desire to hone in on a level for the federal funds rate “sufficiently restrictive to return inflation to 2 per cent over time.”

WASHINGTON: The Federal Reserve delivered another steep interest rate increase on Wednesday (Nov 2), as expected, with its move to cool red-hot inflation ...

We have a ways to go." Advertisement

In the hour-and-a-half after the Fed chair began speaking, the wealth of billionaires from Elon Musk to Steve Ballmer tumbled.

Investors had been widely anticipating a 75-basis point rate hike, while hoping the Fed would signal a willingness to begin downsizing the rate hikes at its ...

Wednesday's decline was the largest percentage drop for the S&P 500 since October 7. I don’t think he should have done it the way he did this. The S&P 500 posted 22 new 52-week highs and 20 new lows; the Nasdaq Composite recorded 108 new highs and 203 new lows. Investors will get more looks at the labor market in the form of weekly initial jobless claims on Thursday and the October payrolls report on Friday that will help drive expectations for interest rate hikes. Register for free to Reuters and know the full story [(.DJI)](https://www.reuters.com/quote/.DJI) fell 505.44 points, or 1.55%, to 32,147.76, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) lost 96.41 points, or 2.50%, to 3,759.69 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) dropped 366.05 points, or 3.36%, to 10,524.80. The private payrolls report came on the heels of data on Tuesday that showed a private payrolls increased more than expected in October, giving more reason to the Fed to continue an aggressive path of rate hikes. The S&P 500 had been modestly lower prior to the policy announcement, as the "Ultimately this will be good for the economy and good for the market." "It is one speech, maybe it is a moment of frustration. The target federal funds rate was set in a range between 3.75% and 4.00%, but the impact of the hike was initially tempered by new language that suggested the central bank was mindful of the effect its outsized rate hikes have had on the economy.

Traders tried to decipher the Federal Reserve's message on its tightening path after the central bank approved another big rate hike.

Powell said it was "premature" to talk about pausing hikes. [10-year Treasury](/quotes/US10Y/) last traded roughly 3 basis points higher at 4.086% after falling below 4% earlier. Bond yields initially dropped sharply after the Fed's new statement hinted at a possible policy change.

Taiwan's central bank won't necessarily follow the US Federal Reserve's latest jumbo rate hike with an increase of its own, Governor Yang Chin-long said ...

U.S. Treasury yields fell in the minutes after the Fed announced its decision to raise benchmark interest rates by another 0.75 percentage point, ...

Treasury yields fell in the minutes after the Fed announced its decision to raise benchmark interest rates by another 0.75 percentage point, a widely expected move by the central bank.\n\nThe yield on the policy-sensitive two-year yield fell to 4.447%, according to Tradeweb, from 4.538% at Tuesday's settlement. Yields fall as bond prices rise.\n\nTraders may be reacting to the statement that accompanied the Fed's decision. The benchmark 10-year yield declined to 3.988%, from 4.052% on Tuesday.

Already, some prices in the US, like those of houses and gasoline, are starting to come down, one expert told CNA's Asia First.

“For now, we are still seeing consistent outperformance in the inflation readings. Advertisement

STOCK markets in the region took a beating on Thursday (Nov 3) after the US Federal Reserve announced its fourth 0.75-point interest rate hike of the year.

U.S. stock index futures slipped on Thursday, signaling a fresh round of selloff spurred by worries that the Federal Reserve's rate-hike cycle is far from ...

29 from 217,000 for week ended Oct 22, according to a Reuters poll. "Although the U.S. [(AAPL.O)](https://www.reuters.com/companies/AAPL.O), Microsoft [(MSFT.O)](https://www.reuters.com/companies/MSFT.O) and Alphabet [(GOOGL.O)](https://www.reuters.com/companies/GOOGL.O) slipped between 0.2% and 1.0% in premarket trading as the 10-year U.S. Department of Labor at 8:30 am ET on Thursday is expected to show initial jobless claims rose to 220,000 for the week ended Oct. [(QCOM.O)](https://www.reuters.com/companies/QCOM.O) tumbled 8.1% after the chipmaker's forecast for holiday-quarter revenue fell about $2 billion short of Street estimates. [(ROKU.O)](https://www.reuters.com/companies/ROKU.O) slumped 20.3% after the streaming platform forecast holiday-quarter revenue below Wall Street estimates as ad spending dries up. [(.IXIC)](https://www.reuters.com/quote/.IXIC) slumped 3.4% on Wednesday as rate-sensitive growth stocks came under pressure on the prospect of higher rates. Register for free to Reuters and know the full story Separately, a survey from the Institute for Supply Management due at 10:00 am ET is expected to show non-manufacturing PMI dipped to 55.5 in October from 56.7 in September. Data scheduled to be released by the U.S. private payrolls increased more than expected in October and job openings jumped unexpectedly in September, pointing to resilience in the labor market. [(.SPX)](https://www.reuters.com/quote/.SPX) ended 2.5% lower on Wednesday, marking its biggest percentage decline in almost a month, after the Fed raised rates by 75 basis points as expected, although Chair Jerome Powell said it was "very premature" to discuss when it might pause the rate hikes.

U.S. Treasury yields climbed on Thursday as markets absorbed the Fed's 75 basis point rate hike and weighed Fed chair Powell's remarks on future policy.

economy on Thursday, as the ISM's non-manufacturing PMI (purchasing managers' index) report is due. The data reflects whether and by how much activity in the services sector has been growing or contracting. It was not immediately clear why the sudden move happened. Markets had also hoped for guidance around future interest rate policy from the Federal Reserve, as concerns about the central bank hiking rate by too much too quickly and dragging the U.S. - Markets had also hoped for guidance around future interest rate policy from the Federal Reserve, as concerns about the central bank hiking rate by too much too quickly and dragging the U.S. - As previously expected, the Federal Reserve announced yet another 75 basis point interest rate hike on Wednesday as it continued its battle against persistently high inflation.

SINGAPORE: Asian and European markets sank on Thursday (Nov 3) after the US Fed hiked interest rates and Chair Jerome Powell suggested that the rates could ...

Again, inflation is proving a tough opponent to beat so another super-size hike is widely expected," Streeter said. Read more: Michael Yong London, Paris and Frankfurt extended the losses. Shanghai, Sydney, Seoul, Wellington, Mumbai, Bangkok, Taipei and Manila were also well in the red.

The Dow Jones initially rose, then fell to end the session with a 1.55% loss at 32147.76 points. Read more at straitstimes.com.

The latest rate hike has lifted the Fed’s short-term target range of 3.75 per cent to 4 per cent, the highest level since January 2008. “But the part I am most conflicted about is the Fed pivot. The S&P 500 fell 96.41 points or 2.5 per cent to 3,759.69 points. We have a ways to go.” OCBC Bank fell 0.9 per cent to $11.95, while UOB dipped 0.2 per cent to $28.02. “So I am inclined to stick to our call for a 50bps hike in December and either raise the number of hikes or the magnitude of hikes in the first quarter of 2023.” The futures market is anticipating the terminal rate to peak at between 5 per cent and 5.5 per cent by May 2023. Japan’s market was closed for a public holiday. Indeed, while raising the lending rate by 75bps this week, Mr Powell hinted that the time to reassess the pace of increases “is coming”, signalling that future hikes in borrowing costs could be smaller. “The Fed’s message was very clear – front-loading of aggressive rate hikes is done, so a taper to 50bps for the December FOMC is likely,” she said, referring to the Federal Open Market Committee. [an increase of ](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) [75 basis points (bps)](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) [ in its key lending rate](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) on Wednesday – the Fed’s fourth consecutive jumbo rate hike – Mr Powell dismissed the idea that the central bank may be pausing its rate hikes soon. [Hong Kong, whose currency is pegged to the US dollar,](https://www.straitstimes.com/business/hong-kong-follows-fed-with-rate-hike-adding-to-economy-s-woes) the Hang Seng Index sank 3.1 per cent.

Shares in the Asia-Pacific dropped on Thursday after the U.S. Federal Reserve Chairman Jerome Powell signaled further hikes ahead.

Stocks slipped following the comment, which signals that interest rates will continue to march higher and likely stay at a higher level than expected for longer as the Fed tames inflation. The S&P 500 also slumped from a post-rate hike spike and was up only 0.09%. Mainland China's [Shanghai Composite](/quotes/.SSEC/) lost 0.19% to 2,997.81, and the [Shenzhen Component](/quotes/.SZI/) was down 0.344% to 10,840.06. hours after Fed Chair Jerome Powell said the terminal rate will still be higher than anticipated – and last stood at 4.1448%. The Dow Jones Industrial Average slid 505.44 points, or 1.55%, to settle at 32,147.76. The [Kospi](/quotes/.KS11/) was 0.33% lower at 2,329.17 and the Japanese market was closed for a holiday Thursday. The Nasdaq Composite tumbled 3.36% to 10,524.80. [S&P/ASX 200](/quotes/.AXJO/) was down 1.84% at 6,857.90. and a slowing Europe," he said. [The yield](https://www.cnbc.com/2022/11/02/treasury-yields-fall-as-traders-await-fed-rate-decision-policy-hints.html) on the [10-year Treasury](https://www.cnbc.com/quotes/US10Y/) rose during U.S. ["Capital Connection"](https://www.cnbc.com/capital-connection/) after [reporting record profits for the quarter.](https://www.cnbc.com/2022/11/03/dbs-profit-jumps-32percent-to-record-on-rates-flags-upbeat-outlook.html) [signaled further hikes ahead](https://www.cnbc.com/2022/11/02/fed-rate-hikes-could-go-even-further-than-expected-as-powell-commits-to-stomp-out-inflation.html) after raising rates by [75 basis points](https://www.cnbc.com/2022/11/02/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-highest-level-since-january-2008.html) as expected and called discussions on pausing the tightening cycle "premature."

The Dow Jones initially rose, then fell to end the session with a 1.55% loss at 32147.76 points. Read more at straitstimes.com.

The latest rate hike has lifted the Fed’s short-term target range of 3.75 per cent to 4 per cent, the highest level since January 2008. “But the part I am most conflicted about is the Fed pivot. The S&P 500 fell 96.41 points or 2.5 per cent to 3,759.69 points. We have a ways to go.” OCBC Bank fell 0.9 per cent to $11.95, while UOB dipped 0.2 per cent to $28.02. “So I am inclined to stick to our call for a 50bps hike in December and either raise the number of hikes or the magnitude of hikes in the first quarter of 2023.” The futures market is anticipating the terminal rate to peak at between 5 per cent and 5.5 per cent by May 2023. Japan’s market was closed for a public holiday. Indeed, while raising the lending rate by 75bps this week, Mr Powell hinted that the time to reassess the pace of increases “is coming”, signalling that future hikes in borrowing costs could be smaller. “The Fed’s message was very clear – front-loading of aggressive rate hikes is done, so a taper to 50bps for the December FOMC is likely,” she said, referring to the Federal Open Market Committee. [an increase of ](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) [75 basis points (bps)](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) [ in its key lending rate](https://www.straitstimes.com/business/economy/us-fed-makes-another-075-point-rate-hike-signals-smaller-increases-ahead-but-higher-peak) on Wednesday – the Fed’s fourth consecutive jumbo rate hike – Mr Powell dismissed the idea that the central bank may be pausing its rate hikes soon. [Hong Kong, whose currency is pegged to the US dollar,](https://www.straitstimes.com/business/hong-kong-follows-fed-with-rate-hike-adding-to-economy-s-woes) the Hang Seng Index sank 3.1 per cent.

The Hong Kong Monetary Authority (HKMA) raised its benchmark interest rate for a sixth time, moving in lockstep with the US Federal Reserve.

HONG KONG (Reuters) -- The Hong Kong Monetary Authority (HKMA) on Thursday raised the base rate charged via the overnight discount window by 75 basis.

Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75 to 7.85 per dollar. monetary policy in 40 years. The move prompted HSBC, the city's largest commercial bank, to increase its best lending rate by 25 bps to 5.375%, effective Friday. rate hikes will not affect the financial and monetary stability of Hong Kong, and the city's financial and money markets will continue to operate in a smooth and orderly manner, while the Linked Exchange Rate System continues to work well. The city's de facto central bank said the Hong Kong dollar interbank rates will rise further if the United States continues to hike interest rates. Federal Reserve delivered a rate hike of the same margin.

Higher borrowing costs add to the many headwinds facing Hong Kong's economy. Read more at straitstimes.com.

“We have built very strong buffers and resilience in the banking system to support this,” he said. The Fed’s aggressive monetary tightening has also raised concerns about the sustainability of Hong Kong’s linked exchange rate system. He said prime rates in Hong Kong may even reach 5.75 per cent by December after the next Fed meeting. The three-month interbank rate has already reached its highest level since the global financial crisis in October 2007. Hong Kong’s banks for months this year kept their prime rates steady, but began raising them in September as the city’s monetary policy tightening became more aggressive. Hong Kong’s de facto central bank raises rates in tandem with the Fed, given the local dollar’s peg to the US dollar, and has done so six times this year.

Just about no one was surprised when the Federal Reserve's Open Market Committee agreed to boost the federal funds rate by three-quarters of a percentage ...

The Fed's consistent message has been that it will do what it takes to bring inflation under control, and that negative short-term consequences are acceptable to preserve long-term financial stability. The change in narrative and its short-term impact on the markets showed just how hard it is to trade with a short time horizon. That suited investors just fine, as they hoped it meant that the Fed would still support a growing economy and Most commentators believed that the Fed would remain stubbornly aggressive in its efforts to clamp down on inflationary pressures, accepting an economic recession if it managed to prevent expectations of permanently higher prices from becoming entrenched in the economy. The increase takes the short-term interest rate up to a new range of 3.75% to 4%. There's a lesson here that every investor should learn from the day's whipsaw moves: Trying to make short-term trades based on imperfect information is a good way to get yourself in trouble.

Federal Reserve Chair Jerome Powell left little doubt that he's prepared to push interest rates as high as needed to stamp out inflation, even as the central ...

SINGAPORE — In delivering its fourth straight steep interest rate hike on Thursday (Nov 3) to quell inflation, the United States Federal Reserve (Fed) ...

But that quickly unwound when Mr Powell warned that the terminal rate would have to be higher than initially expected. TODAY takes a look at what the Fed’s new phase in its effort to control inflation means and the implications for Singapore. While the hike was in line with economists' expectations, the stock market still sold off after Mr Powell said that the Fed still has “some ways to go” in its policy cycle, adding that it was premature to think about a pause as rates could peak at higher levels than previously thought. - Even as the pace of rate hike slows, households would still have to deal with even higher mortgage rates or car loans in the future, economists said - US Fed chair Jerome Powell has said that the Fed could slow down the pace of future rate hikes as soon as next month SINGAPORE — In delivering its fourth straight steep interest rate hike on Thursday (Nov 3) to quell inflation, the United States Federal Reserve (Fed) signaled that it could slow down the pace of future rate hikes.

Another month, another big rate hike. As expected, the Federal Reserve increased benchmark interest rates by 75 basis points at its meeting Wednesday.