Big surprise! Stock markets around the world are on a record-breaking tear, with some hitting all-time highs. This party started after the Federal Reserve decided to hold off on raising interest rates, even though inflation has been a bit higher than expected lately. Investors seem happy that the Fed is staying patient and letting the economy grow.
Switzerland goes rogue! In a surprise move, the Swiss National Bank became the first major central bank to actually CUT interest rates. This weakened their currency, the Swiss franc, and made investors even more bullish on stocks.
Bucking the trend: The US dollar actually rose a bit, even though most currencies weakened. This might seem strange, but some experts think it’s because of the surprise move by Switzerland.
What’s next? Everyone seems to be waiting to see what the Fed and the European Central Bank will do at their meetings in June. The market is currently betting that they will both start cutting rates then, which is further fueling the stock market rally.
Keep in mind: This is all a bit controversial. Some experts worry that the Fed might be waiting too long to raise rates, which could lead to even higher inflation down the road.
