What happened? The US Federal Reserve (Fed) raised its benchmark interest rate by 0.75 percentage point in June. This is the largest interest rate hike since 1994. This was largely expected by investors, who have raised their forecasts of how much the Fed will raise interest rates by over the past week. Earlier, a CME Fed Watch poll showed a 96% probability of a 0.75 percentage point rate hike. Apart from higher than reported inflation numbers, the change in expectation came through from a Wall Street Journal article earlier in the week that reported that the Fed was looking at a more aggressive rate hike. The lack of surprises in the interest rate announcement led to a relief rally in stocks. The S&P 500 rose 1.46% and the Nasdaq rose 2.50% at the market close on 16 June, following days of sharp declines. On the other hand, the US 10-year government bond yield fell by 0.14 percentage point to 3.34%....