Fed Hikes Rates for First Time in Three Years: Will It Be One-and-Done?

The Federal Reserve raised interest rates for the first time in three years, but it may not be a one-time decision. The rate hike puts the Fed Funds rate at 3.75% to 4%, with all 12 policy makers voting in favor of the increase.

Fed Chairman Kevin Warsh stated that inflation 'is too high and has been for too long.' The move was met with negative market reactions, with stock markets sinking and Treasury yields rising. The benchmark 10-year yield climbed above 5% again.

US President Donald Trump expressed strong disapproval of the Fed's decision, urging them to slash interest rates to 1% or less 'because we are the Best Credit in the World, BY FAR.'

The rate hike is part of a series of central bank decisions this week, with the Bank of England expected to hold on Thursday and the Bank of Japan forecast to hike rates on Friday.