Rate hike comes as Federal Reserve Chair Jerome Powell says recent collapse of the Silicon Valley Bank is not indicative of wider weaknesses in the banking system.
Global markets reacted positively to comments by Federal Reserve chief Jerome Powell who said it "makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down".
US President Biden says he is confident Powell will focus on keeping inflation low, prices stable and creating employment opportunities.
Battle between economic optimism and fears about inflation and possible rate hikes that recovery will fuel has continued to play out on trading floors.
With the economy still reeling from the damage inflicted by the coronavirus pandemic, the Federal Reserve confirmed it will keep the benchmark interest rate at zero until the recovery is underway.
The global coronavirus pandemic has affected over 4.8 million people, with around 319,000 deaths, according to a tracker. Here are more coronavirus-related developments for May 18:
As the global economy heads for recession and people fear job losses, all eyes are on a few central bankers.
The British economy would expand by only 0.8 percent this year, the Bank of England said, down sharply on its previous 1.2-per cent forecast.
A total of 38 deaths have been reported in the past 24 hours alone, bringing the number of fatalities to more than 170. The World Health Organization is considering declaring the latest novel coronavirus outbreak a global health emergency.
President Trump accused the countries of orchestrating a massive devaluation of their currencies and called on the US central bank to take action to prevent other nations from doing the same.
Equities fell in Asia as investors took a step back after recent gains, with the focus now turning to a key speech by Federal Reserve boss Jerome Powell at the end of the week.
An incredible day on Wall Street, which saw major indexes finishing at least 5 percent higher, spurred early gains in Asia on Thursday as some traders returned from a Christmas break.
Subscribe to our Youtube channel for all latest in-depth, on the ground reporting from around the world.
Copyright © 2023 TRT World.