Fed Rate Hike Bolsters Markets as Oil Prices Fall

The US Federal Reserve raised interest rates as expected to combat inflation pressures, and falling oil prices bolstered market sentiment.

Stock markets rallied after Wednesday's losses following the Fed's rate hike, with European indices rising after a mixed performance in Asia.

The Fed lifted borrowing costs for the first time since 2023, defying President Donald Trump's demand for cuts, as Chairman Kevin Warsh emphasized the need to combat inflation that has been 'too high' for 'too long.'

'Investors took some comfort from the Fed standing firm in the face of Donald Trump's noisy demands for lower rates,' said Susannah Streeter, chief investment strategist at Wealth Club.