Fed Leaves Rates Unchanged as Markets Signal Rate Hike Ahead

The US Federal Reserve has chosen to leave interest rates unchanged, but investors are taking matters into their own hands. Long-term bond yields have shot up to their highest level since 2007, while Wall Street slumped.

Despite Chair Kevin Warsh's hawkish talk, the Fed has yet to act on rate hikes. Three regional Fed presidents dissented, voting for a 25 basis point increase.

Warsh maintained his stance of providing no guidance, saying 'we're on the job, we will deliver.' The markets, however, have responded by tightening US monetary policy despite the unchanged rates.