What the Fed’s latest big rate hike mean for Singapore

FILE PHOTO: The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore. REUTERS/Edgar Su/File Photo

SINGAPORE: Stock and bond prices plunged and the US dollar rallied as the Federal Reserve (Fed) raised its benchmark rate to the highest level in 14 years to crush surging inflation.

The US central bank raised the Fed funds rate by 75 basis points, or 0.75 percentage point, on Wednesday to a new target range of 3% to 3.25% – the highest since 2008.