To The Moon

Fed increased its interest rate by 0.25 percentage points - its 10th hike in 14 months. The Fed signalled that Wednesday's rise may be its last one for now.

The moves have pushed its benchmark rate to between 5% and 5.25% - up from near zero in March 2022.

How will market move after the rate hikes? Is the last one? How to trade after rate hikes?

Let’s look at what Tigers say in our community!

1. @ZEROHERO:  The Battle Has Begun: Fed vs Investors

Not giving profits back based on Fed's decision since no players can win by staying longer in a casino. Fed is now gambling with the banks

The Federal Reserve raised the fed funds rate by 25 basis points to a range of 5%-5.25%, delivering the eleventh hike in the tightening cycle and bringing the cost of borrowing to the highest since August 2007.

Expecting a volatile day after FOMC. Looking at calls above 409 and puts below 407 on Thursday. Pay attention to market reactions especially from the banking sector before taking action.

2. @Lionel8383 Powell didn’t really want to say much about pause

Volatility is expected to remain as there is much uncertainty of hike or pause. Until the next meeting in June, it is very possible the $S&P 500(.SPX)$ could retest the 3800 level again.

During the press conference, when journalists asked about a potential pause in the next meeting in June, Powell didn't really want to let the cat out of the bag.

3. @nerdbull1669: Will Fed Pivot Really Happen This Time?

 From what I have observed, this is not the first time we are expecting Fed to pivot or rate hike pause. But if we look deeper, Fed might decide to pivot as bank crisis has “slowed down” the economy.

As investors, we should continue to go for defensive stocks as any fluctuation due to any unfavorable economic data or investors decided to avoid “regional banks”. 

I would still stay on defensive stocks like healthcare.

4. @Callum_Thomas: Fed hikes rate to the same level that kicked-off the global financial crisis

Fed hikes rate +25bps to 5.25%, same level that kicked-off the global financial crisis. Fed overdid it on easing, then overdid it on tightening.

Markets might be whistling along, but global trade is clearly in recession

How do you view the Fed rate hikes?

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