A currency trader watches monitors near screens showing the Korea Composite Stock Price Index , left, and the exchange rate of South Korean won against the U.S. dollar, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Nov. 21, 2022. Asian stock markets sank Monday after Wall Street ended with a loss for the week amid anxiety about Federal Reserve plans for more interest rate hikes to cool inflation.
Bullard, president of the St. Louis Federal Reserve Bank, suggested the Fed’s benchmark rate might have to rise to between 5% and 7%. That would be up from its current level of 3.75% to 4% after four hikes of 0.75 percentage points, three times the Fed’s usual margin. Traders expect the Fed to raise its key rate again at its December meeting but by a smaller margin of 0.5 percentage points.
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