What happened?
The US Federal Reserve (Fed) has
kept its benchmark interest rate unchanged in its latest meeting. However,
investors gained confidence from the Fed meeting that the Fed might be done with raising interest rates. Following the Fed meeting, there was a decline in US government bond yields, with the US 2-year government bond yield falling to below 5% from a recent peak of above 5.2% Source: Tradingview
US stocks also rallied after the Fed’s decision to keep interest rates steady. The S&P 500 gained 1.05% following the announcement, while the tech-heavy Nasdaq rose by 1.64%. Here are our key takeaways from the Fed’s latest meeting, and what this would mean for your investments.
What we learnt from the latest Fed meeting
#1 – Fed pauses on rate hikes again
After pausing on its rate hikes in the September meeting, the Fed has kept its...