Event:
On March 17, Beijing time, the Federal Reserve announced a 25bp interest rate increase at its march interest rate meeting, and hinted that it would raise interest rates six more times this year to curb inflation. At the same time, the Federal Reserve hinted that the table contraction may be started in May.
Comments:
The Federal Reserve's interest rate meeting this month marks the official end of the ultra loose monetary cycle. As expected by the market, at this meeting, the Federal Reserve decided to tighten monetary policy by raising interest rates by 25 basis points, end the loose policy since the covid-19 pandemic, and hinted that it would raise interest rates up to six times this year. With the "boot landing" of the Fed's interest rate hike, the US stock market closed with a strong rally yesterday. The Dow Jones industrial average rose 1.6% to 34063 points, the standard & Poor's 500 index rose 2.2% to 4358 points, and the Nasdaq composite index rose 3.8% to 13437 points. This is in line with the law that once the interest rate hike is implemented, the market often returns to the rising trend after a short dip.
