SET upbeat after Fed hikes rates

Market expects one more uptick in 2023

The Thai stock market traded higher on Thursday, bucking overnight drops on Wall Street as most regional bourses were sanguine following Federal Reserve hints that further tightening is possible, while Treasury Secretary Janet Yellen said there is no plan for “blanket” deposit insurance.

Amid banking turmoil, the US central bank lifted its policy rates by 25 basis points to 4.75-5.0%, the highest level since October 2007.

Traders also digested Fed chairman Jerome Powell’s statement that officials “just don’t see” cuts this year, with more rate hikes possible if they are needed.

“In a surprise move, the Fed’s dot plot chart projected an interest rate of 5.10% at the end of 2023, the same as the December 2022 decision, implying the US is likely to raise rates only one more time — in May 2023,”…