The Impact of Federal Reserve Interest Hike: Currency, Stock and Bond Market

Authors

  • Zixuan Li

DOI:

https://doi.org/10.54097/72mayq10

Keywords:

Federal Reserve, Rate Hikes, Currency, Stock, U.S. 10-year Bond

Abstract

The paper investigates the consequences of interest rate hikes initiated by the Federal Reserve on various financial markets. This comprehensive analysis examines the relationships between interest rate changes and their effects on currency, stock, and bond markets, which also discuss the potential scenario or solutions in respond to the rate hike. By analyzing data from different regions of the world, the paper discusses how these monetary policy decisions influence market dynamics, investor sentiment, and overall economy. Federal Reserve raising interest rate has impacted the world from various aspects, which each’s country government needs to plan strategically to respond to the impact toward currency, stock, and bond market. The findings presented in this paper contribute valuable insights for policymakers, investors, and economists seeking a deeper understanding of the intricate interplay between central bank actions and financial market reactions, which it is important to understand the impacts and apply monetary policy in order to ensure economic stability.

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Published

22-01-2024