It is estimated that interest rates will need to be raised six more times this year! If the Fed raises rates as expected by one point, both the four major U.S. stock indices and cryptocurrencies will see a surge.

The Federal Reserve (Fed) raised interest rates for the first time in over three years on the 16th, as expected by the market, causing the Dow and S&P 500 to fluctuate into negative territory during trading hours before swiftly rebounding. All four major indices closed higher, with the Dow rising over 500 points, the Nasdaq up 3.8%, the S&P up 2.2%, and the Russell 2000 up over 5%. Bitcoin surged over 4%, while Ethereum saw a nearly 5% increase, with closing prices at $40,927 and $2,747 respectively at the time of writing. Gold prices fell by 0.17% per ounce, with a trading price of $1,914.

This year, the remaining six Federal Open Market Committee (FOMC) meetings are expected to raise interest rates, with another three hikes anticipated next year. Federal Reserve Chairman Powell stated that "continuing to raise rates... is appropriate."

Powell mentioned that the Fed could announce balance sheet reduction as early as May, and the ongoing conflict between Russia and Ukraine poses "highly uncertain impacts on the U.S. economy." Nevertheless, he expressed confidence in the U.S. economy, stating that "the U.S. economy is very strong and in a favorable position for tightening monetary policy."

Economist Peter Schiff tweeted that "the only reason the Fed is raising rates is inflation... but due to geopolitical risks, and weak economic and financial markets, the Fed has no excuse to keep rates at zero."

This article is republished with permission from Horizon News Network.