Just as many economists anticipated, the Fed raised US interest rates by 75 base points last week.
Following suit, the Bank of England did likewise with its largest increase in 33 years, and the UAE, Saudi Arabia, Bahrain, and Qatar all raised rates too.
For four days out of five last week, American equities declined, with tech stocks bearing the brunt of the damage.
However, estimates from the Commerce Department indicate a 2.6% annual growth rate for the third quarter, reversing two consecutive quarters of contraction.
The dollar reached a two-week high in comparison to the extremely volatile pound, and staying with the theme of volatility, the Hong Kong index rose over 12 percent.
However, in some slightly bullish news, Fed Chair Jerome Powell said that rate hikes might slow “as soon as the next meeting or the one after that.”
He emphasized that no decisions have been made yet but that he was encouraged by how strong the US job market remains.
In more bearish news, as a result of the Federal Reserve’s vigorous efforts to raise interest rates to combat inflation, manufacturing activity in the United States was at its slowest in 2.5 years.
Manufacturing accounts for 12% of the US economy so is a serious consideration in the overall health of the landscape.
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