Asian markets fall as a Fed rate increase approaches, but Putin’s news boosts the dollar and oil

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Last Updated on September 21, 2022 by Bitfinsider

After a small respite the day before, the Asian markets continued their downward trend on Wednesday (Sep 21), as traders got ready for what many believe will be the Federal Reserve’s third consecutive three-quarter point rate hike.

As central banks increase borrowing costs to confront the greatest inflation in decades, which has been exacerbated by the Ukraine war and supply chain snarls, fears of a recession in key economies have rattled stocks throughout the globe.

The Federal Reserve is expected to announce another 75 basis-point increase at its upcoming policy meeting in Washington, though some analysts have predicted a full percentage point increase.

Although the market has already factored in the increase, investors are more interested in the US central bank’s outlook and leader Jerome Powell’s post-meeting remarks.

Officials at the Fed have maintained for months that they won’t back off their aggressive stance unless inflation declines and stays below target.

Because of this, many have issued warnings that interest rates are unlikely to decline anytime soon, probably not until 2024, with a recession highly likely in the United States and other major economies.

As a Fed rate hike looms, Asian markets decline, but Putin’s news lifts the dollar and oil

The Asian markets resumed their downward trend on Wednesday, September 21, following a brief pause the previous day as traders prepared for what many expect will be the Federal Reserve’s third consecutive three-quarter point rate hike.

Fears of a recession in important economies have roiled stock markets throughout the world as central banks raise borrowing prices to combat the highest inflation in decades, which has been worsened by the Ukraine crisis and supply chain snarls.

Though some observers forecast a full percentage point hike, the Federal Reserve is anticipated to announce another 75 basis-point increase at its forthcoming policy meeting in Washington.

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