Market Update

Fed Update

Dollar jumps after Fed pulls interest rate hikes into 2023. Asian stocks looked set for a conscious start on Thursday after Federal Reserve officials sped up their expected pace of policy tightening.

U.S. stocks retreated and Treasury yields jumped with the dollar.

How markets are affected by the FOMC?

If the FOMC ( Federal Open Market Committee ) chooses to raise or lower interest rates, the effects will reverberate across global financial markets. Here how few specific markets reacts:

  • Forex: Any interest change will play out on the US dollar, by far the world’s most traded currency.
  • Indices: Higher rates tend to be bad for shares, while lower rates can be a boon.
  • Bonds: US bonds are often where the fallout from interest changes is felt most directly.

NFO Alert : HDFC Banking & Financial Services Fund

11 June 2021 to 25 June 2021

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