Fed Hikes 25bp to 3.75-4.00%, Hawkish Guidance Triggers Market Selloff

The Fed raised rates by 25bp as expected, but hawkish forward guidance from Governor Warsh shifted market sentiment, causing a sharp risk-off move. The BoE and BoJ decisions are now in focus, with markets pricing potential follow-through tightening. The key uncertainty is whether this marks a sustained hawkish pivot or a one-off adjustment.