Fed Rate Hike Signals Economic Strength

The US Federal Reserve has increased interest rates for the first time since 2023, marking the beginning of another rate hiking cycle. The policy rate is now at a range of 3.75-4% after the 0.25% increase last week.

Despite the rate hike, investment director Mark Lister believes that markets can still perform well in the early stages of a tightening cycle. He suggests that economic strength and growth are signaled by these rate hikes, rather than just inflation risk.