Fed Hikes Interest Rates for First Time in Over Three Years

The Federal Reserve hiked interest rates for the first time in over three years, sending a strong signal that it's committed to fighting inflation. The rate increase was led by Kevin Warsh, who emphasized the Fed's independence and refusal to fixate on any single data point.

Markets are pricing in multiple future hikes, with Goldman Sachs predicting consecutive increases to support a 'timelier' return to the 2% inflation target. The next key event will be the Bank of England's interest rate decision, which could influence markets worldwide.

The Fed's move has sparked concerns about recurring supply shocks and higher-than-expected interest rates. As central banks around the world adjust to this new reality, investors are bracing for potential tightening policies in major economies.