Consecutive cooling inflation results induced Feds to curtail its size of rate hikes to 0.25 percentage points. The central bank’s benchmark overnight lending rate is now 4.50%-4.75%, marking the highest level since October 2007.
Although investors seem optimistic, Fed Chairman Jerome Powell’s hawkish comments proposed a "couple" more rate hikes likely to come. On top of it, experts think that a persistent upward drive in interest rates would trigger a recession, causing severe pain to American workers and the stock market.
