US stocks could face renewed volatility as investors assess how far the Federal Reserve may need to raise interest rates and whether tighter monetary policy will weigh on economic growth and corporate earnings, Reuters reported.
The Federal Reserve raised its benchmark interest rate by 25 basis points last week to 3.75%-4%, marking its first rate increase in more than three years. The central bank also signalled that further tightening could follow as it seeks to bring persistently high inflation back toward its 2% target. Reuters reported that 16 of 18 Fed policymakers projected at least one additional rate increase by the end of 2026.
