Interest Rate Increase | Weekly Extract

Week of March 14-18

A response to inflation

The Federal Reserve on Tuesday approved the highest interest rate hike in more than three years and anticipates six more to come.

In their press release they mentioned that "Economic activity and employment indicators have continued to strengthen. Job creation has been solid in recent months and the unemployment rate has declined substantially. Inflation remains elevated, reflecting pandemic-related supply and demand imbalances, higher energy prices and broader price pressures."

Asia makes a strong comeback

Asian stocks held on to their gains from this week's sensational rally driven by China's pledge of support for its markets.

Chinese regulators are expected to gradually ease their crackdown on sectors ranging from technology to real estate after Vice Premier Liu He vowed to stabilize battered financial markets, but he also urges investors to exercise caution as political uncertainties remain significant.

Government departments must now consult with financial regulators, including the Financial Stability and Development Committee (FSDC) before publishing policies that are deemed to have a "significant impact" on capital markets.