Home topics news Credit: Fabian Blank News News US Fed raises rates amid turmoil Yajush Gupta March 23, 2023 The US Federal Reserve’s decision to slightly increase key interest rates by 0.25 points to a range of 4.75 per cent to 5 per cent has surprised some analysts. The response to the decision has been divided, with some praising the central bank’s optimism in the economy, while others express concern that it may exacerbate ongoing financial issues, especially following the collapse of several banks. Despite assuring the public that the banking system remained “sound and resilient,” the Fed has acknowledged the potential risks by signalling a possible pause on future rate hikes in response to recent financial sector turbulence. This cautious approach has raised questions among experts about the Fed’s overall strategy and its potential impact on the US economy and global markets. This month saw the collapse of two US banks, Silicon Valley Bank and Signature Bank, which experts attribute in part to issues stemming from the recent hike in interest rates. READ THE FULL STORY HERE . How does the US interest rate affect Australia? A rate hike by the US Federal Reserve (Fed) could impact Australian businesses in several ways. Firstly, the rise in interest rates could result in the appreciation of the US dollar against other currencies, including the Australian dollar, potentially reducing demand for Australian goods and services in the US market. This could also increase competition in the domestic market as imports become cheaper