Fed Hike Sparks Hawkish Sentiment Across Global Central Banks

The Federal Reserve has raised interest rates for the first time in over three years. The decision was seen as hawkish, setting the tone for other central banks to follow suit. Kevin Warsh, a member of the Fed's board, did not provide forward guidance, citing the need to focus on inflation and independence rather than specific data points.

Futures markets are pricing in three more rate hikes this year, despite the Fed's dot plot indicating only one hike. Goldman Sachs is calling for a follow-up move in October to support a return to the 2% inflation target.

The Bank of England is expected to hold steady today, but may face pressure from sticky energy prices. The BoJ is likely to raise rates on Friday, and other central banks are also expected to tighten policy by year-end. The hike has boosted the dollar to seven-week highs and lifted Treasury yields.