Federal Reserve sets the stage for March interest rate hike

Here are a few reasons to pick up a copy of The Guardian on Thursday. Find these stories and much more when you grab a copy of The Guardian on Thursday.⁣⁣

The US stock market received a boost from the Federal Reserve's announcement, with near-zero rates pushing capital towards shares. What was once a choice, before the coronavirus outbreak, might now be a necessity.

The US stock market received a boost from the Federal Reserve's announcement, with near-zero rates pushing capital towards shares. What was once a choice, before the coronavirus outbreak, might now be a necessity.

Here are a few reasons to pick up a copy of The Guardian on Wednesday. Find these stories and much more when you grab a copy of The Guardian on Wednesday. ⁣

The European Central Bank has announced it is leaving its benchmark refinancing rate on hold at a historic low of 0%.

The US Federal Reserve has opened the door to an interest rate hike and tapering of its emergency monetary stimulus. The central bank has warned, though, that the rising number of Covid-19 cases could impact economic growth. Christian Lawrence, Senior Markets Strategist at Rabobank New York, explains the impact on American households. Also on the show: Netflix seeks the golden ticket as it acquires the rights to late British author Roald Dahl's creations.

The Federal Reserve is paving the way for possible interest rate hikes next year, in an effort to contain stubbornly high inflation. At the conclusion of a two-day policy meeting Wednesday, the central bank announced plans to phase out its large-scale bond-buying program faster than initially planned. The Fed started purchasing bonds during the pandemic as a way to keep borrowing costs across the economy low and to prevent any market disruptions.

Inflation in the United States has jumped to 7%, the highest increase in nearly four decades. The Federal Reserve has already begun removing pandemic-related stimulus.

It's been a rollercoaster 24 hours on global stock markets, with huge swings on Wall Street and volatility hitting its highest level since October 2020. Investors are waiting for the decision from the US Federal Reserve on when it will start raising interest rates, but are also concerned about the rising tensions at Ukraine's border. Meanwhile, Bitcoin has slumped as low as $33,000, down over 50 percent from its peak in November. Our Business Editor Stephen Carroll has the details.

The US Federal Reserve is setting the stage to raise interest rates in March, to combat elevated inflation. It's also taking further steps to phase out its emergency support of the US economy. Nancy Vanden Houten, Lead US Economist at Oxford Economics, says America's central bank has limited tools to fight the surge in prices. Also in the show - workers at France's EDF go on strike, over government efforts to limit electricity bills.

Stock markets slumped in Asia on Thursday and European shares started the day's trading in the red, after signals from the US Federal Reserve that it could raise interest rates more than three times in 2022. Fed Chair Jerome Powell said the central bank's policy committee was "of a mind" to start raising rates in March, and that it would be guided by the economic data. FRANCE 24's Business Editor Stephen Carroll looks at market reaction to the announcements.

The Fed raises interest rates by the most in over 20 years The Federal Reserve raised interest rates by half a percentage point Wednesday, in an effort to cool off demand and lower inflation. Consumer prices have been rising at the fastest pace in 40 years.