The biggest losers and the biggest winners from the Fed’s interest rate hikes

3 min readJun 20, 2022
  • At its policy meeting on Wednesday, the Fed raised interest rates by 0.75 basis points.
  • The following two trading days after the announcement was tough for some indexes and a little quiet for some other pairs and commodities.
  • The energy sector wasn’t spared from the impact of the interest rate rise.

The prior week in the market was as hot as our summers have been in recent years. Surely, this was not due to climate change, but rather the Fed’s Wednesday announcement of an interest rate hike, which had a big impact on the market.

However, as the saying goes, disasters in some regions bring opportunities in others. The hike in the interest rate pushes investors to withdraw their liquidity from the market and makes the borrowing cost higher for them, causing them to avoid risky investments due to the safe-haven money that could come from risk-free banks’ interest returns.

Let me begin on a positive note by discussing the main beneficiaries of the FOMC’s action to tackle excessive inflation levels. As a result, the dollar index concluded the previous trading week with a weekly gain of 0.48 percent. The DXY reached a level not seen since December 2002, which was at 105.788, before completing the trading week at…