Fed Hike Leaves Investors on High Alert for Further Rate Increases

The Federal Reserve's decision to raise interest rates by a quarter percentage point has left investors uncertain about future rate hikes. The unanimous vote on September 16, which lifted the benchmark rate to 3.75 percent-4.00 percent, strengthened confidence in the Fed's approach to inflation but raised concerns about the potential impact on the economy.

Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, said that while the decision made the Fed look independent and added trust to the market, it may have come across as too hawkish. 'We're just going to have to see how the economy can react in the next couple of months,' he noted.

The meeting was seen as a test of independence for new Fed Chair Kevin Warsh, who was picked by President Donald Trump. Marta Norton, chief investment strategist at Empower, said that investors should take away from the meeting that economics is trumping politics at the Fed, at least for now.