Dollar and treasury yields rise as Fed hikes rates for first time since 2006

Widely expected by industry

The Federal Reserve has today raised interest rates by 25bps for the first time since 2006, in a move widely expected by market participants.

The Federal Open Market Committee (FOMC) has finally decided to raise interest rates in the US to 0.25%-0.5%, following its December meeting. The US dollar rallied and treasury yields spiked on the news, with the dollar trading 0.5% higher against sterling at $1.4975 immediately following the announcement, while 10-year treasuries spiked to 2.3%. Meanwhile, the US market edged upwards following the announcement, but the rise remained muted, with the S&P 500 up 0.6% to 2,055. The committee voted unanimously to hike interest rates, in a move that marks the first time the Federal Fund...