The impact of the Federal Reserve’s interest rate hike will be: It will have certain negative effects on the U.S. stock market and even the global stock market. As the world's largest currency, the U.S. dollar's circulation will decrease after interest rates are raised, which will cause the U.S. stock market to fall. A fall in U.S. stocks will trigger a fall in the stock markets of other countries. If the U.S. raises interest rates, the U.S. dollar will appreciate, which will be detrimental to rising commodity prices and spot and futures prices, so it is negative. A U.S. interest rate hike will cause the U.S. ten-year Treasury bond rate to rise.

An interest rate increase is an action by the central bank of a country or region to increase interest rates, which increases the cost of commercial banks borrowing from the central bank, thus forcing the market interest rates to also increase. The purposes of raising interest rates include reducing money supply, suppressing consumption, suppressing inflation, encouraging deposits, slowing down market speculation, etc. Raising interest rates can also be used as an indirect means to increase the value (exchange rate) of the country's or region's currency against other currencies.

On September 16, 1992, the Bank of England raised the pound's interest rate twice in one day, which was a typical example of interest rate hikes in modern financial history. In China, raising interest rates is also one of the auxiliary means of national macro-control. The central bank has raised interest rates three times in 2011 to cope with high inflation.

An interest rate increase is a purposeful increase by the central bank or ordinary commercial banks (including non-bank financial institutions) to one or more of the current interest rates, usually to achieve a specific goal. measures made.

In a narrow sense, an interest rate increase is an action by the central bank of a country or region to increase interest rates. It usually refers to raising deposit interest and loan interest, thereby increasing the borrowing costs of commercial banks and other financial institutions to the central bank. increase, thereby forcing the market interest rates to also increase. The purposes of raising interest rates include reducing money supply, suppressing consumption, suppressing inflation, encouraging private deposits, slowing down or inhibiting market speculation, etc. Raising interest rates can also be used as an indirect means to increase the value (exchange rate) of the country's or regional currency against other currencies.

Generally speaking, the direct purpose of raising interest rates is to force commercial banks to borrow from the central bank at a more expensive cost, thereby forcing the inter-bank lending interest rates (such as overnight bank interest rates and interbank offered rates) to increase. , to increase the cost of short-term financing in the entire financial market and curb malicious speculation.

Raising interest rates is not only an economic behavior, but also the product of multiple political and social factors. Sometimes it may not be done for economic purposes, but due to pressure.

For example, when a country or a certain region cuts interest rates when its own (or local) currency continues to appreciate, thereby increasing the money supply, it can achieve the purpose of suppressing currency appreciation (there are many ways to succeed in this behavior) premise), but the country or region will face new pressure on rising prices and will have to raise interest rates to stabilize prices (if interest rate cuts increase, prices will rise further).