Fed hikes 25bp, signals more tightening; Euro markets positive

The Federal Reserve raised its benchmark rate by 25 basis points and signaled further increases in the coming months, a hawkish surprise given prior market expectations of a pause. Euro-area equities and sentiment rose, likely on the view that the Fed's confidence in the U.S. economy supports global growth, though the rate path remains uncertain. This matters as it sets the tone for global monetary policy and risk appetite.