Fed Raises Rates for First Time in Three Years Amid Soaring Oil Prices

The Federal Reserve has raised interest rates for the first time in three years, defying pressure from President Trump to cut. Macquarie Group now expects a total of 75 basis points in rate hikes and a fed funds rate between 4.25% and 4.5% by early next year.

According to Nic Puckrin, macro analyst and founder of Coin Bureau, the more important question is whether this hike will be one-off or part of multiple hikes. 'This hike was overwhelmingly expected by market participants,' he said.

The Fed's decision follows months of holding rates steady despite pressure from President Trump to deliver a rate cut. Macquarie's head of economics, David Doyle, sees several developments as hawkish in Fed Chair Kevin Warsh's comments on the decision.