Fed Forced into Rate Hike as Bond Market Exerts Pressure

The Federal Reserve was forced to hike interest rates for the first time since 2023 after being bullied by the bond market, which threatened to skyrocket Treasury yields if action wasn't taken.

Americans have been struggling with persistent inflation for five years, and rate hikes can help combat it. However, they come with a side effect: potentially slowing down the job market.

The Fed's decision was partly driven by high energy prices caused by the war with Iran, which is beyond their control. Despite this, the central bank raised its target interest rate to tackle inflation.