Breaking: Fed hikes policy rate by 75 bps as expected

The US Federal Reserve on Wednesday announced that it had lifted the policy rate, federal funds rate, by 75 bps to the range of 2.25-2.5%. This decision came in line with the market expectation.

In its policy statement, the Fed noted that it anticipates that ongoing increases in the policy rate will be appropriate. With the immediate reaction, the dollar has come under modest pressure and the US Dollar Index fell below 107.00.