Fed hikes rates again and warns of more rises

[Scott]

The US central bank has hiked interest rates again, and warned more rises will be necessary to rein in the rapid pace of price increases.

Forecasts from the Federal Reserve showed the bank's key interest rate could stand above 5% a year from now.

But policymakers are starting to move more cautiously, following signs that the most severe inflation in decades may be starting to ease.

https://www.bbc.com/news/business-63977120

[Isaan sailor]

What a difference a lower interest rate hike makes.  Currency traders have pounced on the USD, bringing it down several hundred Satang.  Will they take the USD down precipitously again when interest rate hikes end?  

[The Theory]

I'm wondering if US interest rates rising  why Thai Baht getting stronger????, from 38 to less than 35. ????

[KhunBENQ]

European Central Bank follows with only 0.5 %.

Quote

15 December 2022

The Governing Council today decided to raise the three key ECB interest rates by 50 basis points and, based on the substantial upward revision to the inflation outlook, expects to raise them further.