# Why the World Is Watching U.S. Interest Rates - Bloomberg

> Bloomberg reports that markets increasingly expect the Federal Reserve to tighten policy after Congress approved large tax cuts and spending increases. Futures pricing implies the Fed's short-term rate will reach 2% by December, a quarter point above expectations from three months earlier. Inflation and wage growth are cited as signs the economy is heating up.

- Date: 2018-02-12 · published 2018-02-12T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/66701-why-the-world-is-watching-u-s-interest-rates-bloomberg
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher expected US rates tend to support the dollar, which weighs on dollar-priced commodities and can slow export demand. The fiscal-stimulus driver also raises the chance of faster tightening, which increases pressure on feed margins.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | -0.5% | -1.4% |
| DXY | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -0.6% | +1.6% |
| DXY | 2022-07-27 | [FOMC: Fed Raises Interest Rates by 75 Basis Points to Double Down on Inflation - Bloomberg](https://feedsoft.ai/events/40388-fomc-fed-raises-interest-rates-by-75-basis-points-to-double-down-on-inflation.md) | -0.7% | +0.2% |
| DXY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -1.0% | -1.1% |
| DXY | 2019-04-30 | [Market alert: Will the Fed cut interest rates? \| XTB](https://feedsoft.ai/events/59760-market-alert-will-the-fed-cut-interest-rates-xtb.md) | -0.1% | +0.7% |

## Sources

- bloomberg.com: https://www.bloomberg.com/view/articles/2018-02-12/why-the-world-is-watching-u-s-interest-rates

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.