News analysis

Fed hikes rates for 9th time but it’s Yellen’s comments on bank deposits that rattle markets

The Fed has raised its funds rate for the ninth time since the beginning of last year. PHOTO: REUTERS
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SINGAPORE – The banking turmoil in the United States has complicated the work of the Federal Reserve, as its move to raise interest rates on Wednesday and the market reaction that followed showed.

The Fed raised its funds rate – the ninth time since the beginning of last year – and said the US banking system, which has been rocked by the failures of several regional banks, remained on a firm footing.

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