Asian Markets Rise as Fed Hikes Rates for First Time in Three Years

Asian markets mostly rose on Thursday after the US Federal Reserve raised interest rates for the first time in three years. The decision, announced on Wednesday, was a unanimous one and saw borrowing costs increase by 25 basis points.

Fed Chair Kevin Warsh emphasized the need to fight inflation, which has been 'too high' for 'too long.' He stated that removing a dose of accommodation would make financial and credit conditions more consistent with the central bank's objectives.

The Fed's projections showed most policymakers expect at least one more rate hike by year-end. This sent traders into a frenzy, now seeing an even chance of another increase in October.

Wall Street's three main indexes closed lower on Wednesday, but Asian investors reacted positively to the move. Analysts said it strengthened the central bank's credibility and offered reassurance that officials are determined to beat inflation.