Stocks Rally After Fed Hikes Rates

The Federal Reserve raised rates by 25 basis points, as expected. Some market watchers say this brings it a step closer to ending its tightening policy

Stocks surged Thursday after the Federal Reserve raised the key federal funds rate by 25 basis points, to 5.25%, as expected. The markets are interpreting its statement, which focused on moderation in economic growth as well as inflation risks, as a sign the Fed may end its monetary tightening cycle in August or September, says Standard & Poor's Equity Research.

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