Fed Hikes Rates, May Not Be Done Yet Amid Rising Inflation Concerns

The Federal Reserve raised interest rates for the first time in three years, but may not be done yet. The Fed Funds rate is now at 3.75% to 4%, with all policy makers voting 12-0 in favor of the increase. Fed Chairman Kevin Warsh stated that inflation 'is too high and has been for too long.'

Stock markets sank, and Treasury yields rose following the decision, with the benchmark 10-year yield climbing above 5% again.

The move also drew strong backlash from U.S. President Donald Trump, who demanded the Fed slash interest rates to 1% 'or less' after the decision, adding 'because we are the Best Credit in the World, BY FAR.'

In other news, oil prices dropped as U.S. Energy Secretary Chris Wright said the damage to Saudi Arabia's damaged East-West pipeline was temporary and that it would restart operations in days.