(Photo by Samuel Corum/Getty Images) Getty ImagesMarkets sank last week when the Federal Reserve (Fed) hiked its benchmark federal funds rate 75 basis points to a target of 3-3.25%. Having expected this move, the market’s response had less to do with what the Fed did than what it promised at the same time. Even with a construction uptick in August, new housing starts stand nearly 13% lower than last April when the interest rate increases began. But the assessment also accounts for the ongoing economic effects of Fed policy. Second, the Fed will continue to raise interest rates.

Source: Forbes September 24, 2022 01:38 UTC