Federal Reserve Hikes Interest Rate Amid Global Inflation Crisis

The U.S. Federal Reserve has raised its benchmark interest rate for the first time in three years and two months, amid rising global inflation. This move comes as countries like Japan, Korea, and the United Kingdom struggle with their own inflation crises.

According to Steve Inglander, Head of SC North America's Macro Strategy at Standard Chartered, there is a possibility of another interest rate hike this year, likely in December rather than October. However, he believes that there will be no further increases after this year, as actual core inflation is falling and the impact of tariffs is expected to ease further.

Inglander also notes that the U.S. Department of Commerce plans to revise the method of calculating the personal consumption expenditure (PCE) price index this month, which could lead to a decrease in inflation rates.

The interest rate on long-term government bonds has been soaring every day, and Inglander expects it to continue rising due to strong global credit demand. However, he believes that the real interest rate is already very high and may not exceed 6% in the near future.