Fed Hike Sends Shockwaves Through Global Markets

The Federal Reserve's decision to raise interest rates for the first time in over three years has sent shockwaves through global markets. The hike, led by Kevin Warsh, was a united front against inflation and a clear signal that the bank is committed to its independence.

Markets are pricing in not one, but three more hikes this year, despite the Fed's dot plot showing only one increase. Goldman Sachs has already called for a follow-up move in October, citing the need for a 'timelier' return to the 2% inflation target.

The pressure on other central banks is now intensifying, with the Bank of England set to make its decision today. While markets expect the BoE to hold steady, there are concerns that sticky energy prices could force its hand into a November hike.