Dollar towering, stocks cowering as Fed hikes higher

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The dollar surged to a fresh two-decade high against major peers and stocks fell on Thursday after the Federal Reserve raised U.S. interest rates and forecast more hikes ahead than investors had expected.

The Fed raised rates sharply, by 75 basis points, on Wednesday - the third such rise in a row. That takes the bank's benchmark overnight rate target range to 3-3.25%.Projections showed officials think rates are going higher and growth is going lower and the median forecast is for the funds rate to hit 4.4% this year - higher than markets had priced and 100 bps more than the Fed projected three months ago.

The U.S. yield curve deepened its inversion in a volatile session overnight as short-end Treasuries sold and the longer end rallied as investors priced out the chance of a "soft" economic landing, and braced for damage to longer-run growth. Japan has this week driven home its commitment to ultra-dovish policy by spending more than 2 trillion yen in the past two days to hold a 0.25% ceiling on the 10-year Japanese government bond yield.

 

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❤️Maybe it’s better to control inflation and keep strong dollar than to raise stocks❣️

Imagine thinking anything other than a United States Dollar has any value whatsoever

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