Fed Raises Rates to 3.75-4.00% Six Days After ECB Move to 2.50%

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Summary · why it matters

The Federal Reserve raised its benchmark rate to 3.75-4.00% on Wednesday, its first increase since 2023, matching the quarter-point size of the European Central Bank's move six days earlier. The ECB acted first, lifting its deposit rate, the return banks earn on money parked with it, by a quarter-point to 2.50%. The Fed's matching increase came six days after the ECB's decision, and the sequence is weighing on the Euro.

Impact on assets 4

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％ECB rates
ECBRATES
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ECB raised its deposit rate by a quarter-point to 2.50%, lifting the policy rate/yield.

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