Fed’s policy update. Nothing to worry about?

News of the day, Thursday, March 17

The much-awaited Fed meeting resulted in a rate hike yesterday. As expected, the rate increased by 0,25%. Although this number may seem tiny, it is important to consider this rate hike is not the last one this year. The prognosis of the interest rate dynamics suggests an increase of up to 3% until this year ends. Such a delicate pace of the monetary policy shift stays in line with the Fed’s gentle policymaking fashion — at least it looks like that from the outside perspective. The next Federal Reserve meeting might cover reducing the size of the balance sheet. The Fed shows that the rising tensions in Europe provide much uncertainty and may pressurize the prices and the overall economic activity. However, the market reacts with optimism since such decisions match public expectations — S&P 500 gained 2.24% today.

The price of Brent crude is $102.70, WTI — $99.50, GBP/USD — 1.3165, EUR/USD — 1.1035, and gold costs $1945.00 per ounce.