Context of Hike

Interest-rate markets are betting strongly that the nation’s central bank will reverse course and ease policy sharply to contain, or at least counter, the effects of the nervousness over further bank problems. That’s evident in futures contracts on the federal-funds rate, which show that traders expect no more increases after the quarter-point hike this past week. In fact, they’re anticipating cuts, possibly as early as June. That would introduce risks of its own.

After the Federal Deposit Insurance Corp., the Treasury, and the Fed took actions aimed at shoring up confidence in the banks, Powell declared at his press conference on Wednesday that “all depositors’ savings and the banking system are safe.” He spoke after the Federal Open Market Committee had disclosed the latest hike in its key policy rate: one-quarter of a percentage point, bringing it to 4.75%-5.00%.

–Barron’s

Which of the following BEST interprets the meaning of “hike” in the passage?

Related Topic

–Federal Reserve pauses interest rate hikes for first time in months | Video by ABC News

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