Recent pauses to the U.S. Federal Reserve’s campaign to tackle inflation through rising interest rates offers some reprieve to investors, but further hikes may be on the way
The U.S. Federal Reserve may have paused interest rate rises for the meantime, leaving unchanged at 5 per cent to 5.25 per cent.
However, the bank also signalled that investors should expect two further rate rises by year’s end depending on how close the economy comes to reaching the Fed’s target range of 2% inflation.
That pause though has led to some good times for investors, particularly when it comes to tech stocks.
So far this year, the tech-heavy Nasdaq Composite Index has risen 30.8 per cent, outperforming the S&P 500 which is up roughly 15 per cent, while the Dow Jones Industrial Average is up only 3.5 per cent.
Investors will be looking ahead in the next few weeks as some of the world’s largest companies begin reporting season.
