What does the Fed mean by raising interest rates by 25 basis points?
The Fed raised interest rates by 25 basis points, which means that the Federal Reserve Management Committee decided to adjust monetary policy and raise interest rates by 25 basis points after the interest rate meeting in Washington.
Take March 2022 17 as an example: The Federal Open Market Committee (FOMC) of the Federal Reserve raised the federal benchmark interest rate from 0% to 0% as expected, which is the first rate hike since February 20 18.
What is the impact of the Fed's interest rate hike on the stock market?
The Fed's interest rate hike is bad for the stock market, and the stock price will fall. Because after the Fed decides to raise interest rates, many American depositors will be willing to put their money in the bank when they see that the deposit interest rate has increased, then the funds in the stock market will decrease and the stock price will fall, and the United States is at the center of the global economy. When the American stock market falls, the global stock market will be affected.
When the interest rate of the Federal Reserve increases, mainland funds or foreign capital will flow into the US capital market, leading to the appreciation of the US dollar. The depreciation of RMB is unfavorable to many enterprises, especially foreign trade enterprises, because the depreciation of RMB means spending more money on raw materials, which is not conducive to the company's operation.