The Fed will announce a new decision: the peak interest rate is expected to be 4.8%

In the Asian session on Wednesday (March 22), the U.S. dollar index rose, with the latest price of the U.S. dollar at 103.24, an increase of 0.02%. Markets are pricing in an 85% chance of a quarter-point rate hike when the Fed announces its monetary policy decision on Wednesday.

A few weeks ago, the market expected the Fed’s benchmark overnight rate to peak at 5.5%, and it is now forecast at around 4.8%.

“(The Fed) should be signaling that inflation is still the focus now, but obviously with due account of what has been done and highlighting what else they can do to prevent turbulence to First Republic Bank,” said Edward Moya, senior market analyst at OANDA. spread further.”