The US Federal Reserve is likely to lift interest rates by just 0.75% this year amid improving economic figures, benefiting Asian stock markets as well as high-risk assets, investment company Principal Asset Management said yesterday.
The comment was made before the first 2023 meeting of the US central bank's Federal Open Market Committee today and tomorrow, when it is poised to raise interest rates by 0.25% from the current range of 4.25-4.5%. The increase marks another slowdown from the 0.50% rate increase the Fed announced in December, which itself was a step down from the 0.75% pace of rate hikes seen during the previous four meetings.
