Fed hikes discount rate!!

After the bell, the Fed put a damper on the 3-day rally by a surprise hike in its discount rate. The Fed, in its first interest rate move since Dec 2008, raised the emergency lending rate it charges banks from 0.5% to 0.75%.

Despite assurance from the Fed that the move will not raise borrowing costs for consumers and companies, this is likely set fears in investors that the current low interest rate environment is unlikely to last for long.

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