25%, aiming to address ongoing inflation challenges. This decision led to a dip in Asian sovereign bonds and the dollar, while gold maintained its losses.

Interestingly, Asian stock markets posted minor gains, leaving investors speculating about the future trajectory of monetary policy adjustments. 1% higher with gains in Japanese and South Korean benchmarks.

Shorter-dated Asian sovereign bonds fell, tracking moves in Treasuries after the Federal Reserve raised interest rates for the first time since 2023 and signaled further tightening to curb inflation. The dollar gained the most since June.

74%, the highest since 2024. The moves came after Fed Chair Kevin Warsh struck a hawkish tone, saying the rate increase “removed a dose of accommodation.”

Money markets priced in about a 50% chance of another Fed hike in October. 5% in New York trading after the Fed hiked rates.

Gold, which typically loses its appeal as rates rise, held its losses from the previous session, trading around $4,270 an ounce. 1% higher with gains in Japanese and South Korean benchmarks.

Equity-index futures for the S&P 500 Index and the Nasdaq 100 Index also rose in early Asian trading. “The Fed had no choice but to give the market a hike or risk a much bigger bond market selloff, which is shown in the 12-0 vote,” wrote Byron Anderson, head of fixed income at Laffer Tengler Investments.

“The Fed is trying to calm the bond market rather than signaling a hiking cycle.” 75% to 4%.

The Fed’s so-called dot plot, which shows policymakers’ projections for the path of interest rates, indicated one more increase this year. Investors are now weighing how quickly the Fed may tighten further as policymakers confront broader inflation pressures.

“The committee removed references to inflation being driven by supply shocks, suggesting policymakers are increasingly focused on broader and more persistent inflation pressures rather than viewing recent price increases as largely transitory or externally driven,” said Daniel Siluk, portfolio manager at Janus Henderson Investors. In other corners of the market, oil retreated on signs that some recent Middle East supply disruptions are easing, with traders also adjusting positions after a blistering rally.

00. On Wednesday, Brent settled below $106 a barrel as Saudi Arabia sought to restore about half the capacity of its East-West pipeline within days after drone strikes forced its closure last week.