CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FOMC meeting: Fed raises interest rates again to cool record inflation

By Joseph Toppe

18:52, 27 July 2022

Jerome Powell
Fed will raise interest rates again, higher market volatility predicted

The US Federal Reserve announced Wednesday it would once again raise interest rates to curb the four-decade high inflation, going up 0.75% to an overall range between 2.25% and 2.5%.

Following the Fed’s decision, all three major US benchmarks are trading in the green, with the Dow Jones Industrial Average (US30) up roughly 374 points, or 1.18%, the S&P 500 (US500) up approximately 2.25%, while the Nasdaq 100 (US100) leads the index rebound, moving to around 3.76% into positive trading

What is your sentiment on US100?

Vote to see Traders sentiment!

Nasdaq 100 (US100) price chart

More rate hikes = increased market volatility

In an interview with, Joey Von Nessen, research economist at the University of South Carolina’s Darla Moore School of Business, said, “The Fed has been clear that its top priority is to restore price stability – and that means continuing to raise rates until we see a meaningful reduction in the US inflation rate.”


33,142.00 Price
+0.790% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 2


18,563.50 Price
+1.830% 1D Chg, %
Long position overnight fee -0.0228%
Short position overnight fee 0.0009%
Overnight fee time 21:00 (UTC)
Spread 31.0


14,474.10 Price
+1.560% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.8


15,893.60 Price
+1.230% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 21:00 (UTC)
Spread 1.5

“The slowdown will translate into a period of higher volatility for markets in the second half of the year,” he warned. “The Fed will likely stay committed to fighting inflation and to pursuing additional rate hikes, but we still don’t how much a slowing economy will impact the aggressiveness of future hikes.”


Markets in this article

US 500
4228.8 USD
47.5 +1.140%

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading