Fed Meeting in Focus as Markets Await Rate Hike Decision

As investors gear up for the conclusion of the Federal Reserve’s two-day policy meeting later today, markets are on tenterhooks anticipating the central bank’s decision on interest rates.

Most analysts expect the Fed will raise rates by another 75 basis points, the fourth consecutive hike of such magnitude.

A 75 bps hike today is widely seen as a done deal. The focus will be on any signals Powell provides about the pace of future hikes.

The Fed chief may reiterate the central bank’s commitment to restrictive policy for some time.

Markets have been on a rollercoaster ride ahead of the meeting. Bond yields surged and stocks tumbled recently on fears of more aggressive tightening.

The dollar has strengthened to multi-decade highs, adding to imported inflation woes for other countries.