As expected by many investors, The United States Federal Reserve, also known as just the Fed, raised interest rates by 25 basis points on Wednesday but omitted from saying in its latest policy statement that an "ongoing increase" in rates will likely be appropriate.

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The Fed's actions have far-reaching effects, not just in the United States, but globally. As one of the world's most influential central banks, the Fed's decisions can impact the global economy. Therefore, it is crucial that they make the right decisions and maintain a balance between fighting inflation and ensuring stability.

In an interview with CNBC-TV18, Ed Yardeni, President of Yardeni Research said that the Fed might hike rates one more time by 25 basis points to combat inflation.

Also Read | Wall Street falls over 1%, Treasury yields retreat as Fed signals pause in rate hikes

He said, “The Federal Reserve, may go one more time by 25 bps though the fact that we now have a banking crisis and that the Fed understands that the banking crisis is equivalent to some increase in the Fed funds rate.”

The Fed has been working hard to maintain stability while also fighting against inflation.

Also Read | Oil prices fall as investors weigh Fed chair Jerome Powell's statement, rate hike

Talking about inflation, Robert Sockin, Global Economist at Citi said that while inflation is a significant concern, the Fed must also ensure that the financial system remains stable. The Fed has been taking a cautious approach to raising interest rates, as they do not want to cause any shocks to the economy.

Also Read | Fed hikes interest rate by 25 bps to 5%, hints at 'some additional policy firming'

Meanwhile, Abhilash Narayan, Senior Investment Strategist-Group Wealth Management at Standard Chartered Bank said, “We have two more central bank meetings later today, the Bank of England as well as Swiss National Central Bank, and the most closely watched will be Swiss National Bank with the saga between Credit Suisse and UBS play out. So, it would be instructive to see whether they are still focused on fighting inflation and raising rates.”

(Text input from Reuters)

For the entire discussion, watch the accompanying video

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