Finance

In a unanimous decision during its September meeting, the Federal Reserve raised interest rates by 25 basis points, marking its first rate hike since 2023. Central bank officials signaled a hawkish stance, pointing to persistent inflation and robust economic momentum as reasons for keeping borrowing costs elevated. Financial markets are now pricing in a strong probability of additional rate hikes before the end of the year.

The 10-year U.S. Treasury yield crossed back up to the critical 5% threshold, reaching multi-year highs and presenting a significant headwind for equity valuations. Meanwhile, energy markets experienced renewed volatility as West Texas Intermediate crude oil futures rallied back above $102 a barrel. The combination of surging yields and rising oil prices has renewed concerns that entrenched inflation could force central banks to keep monetary policy restrictive for longer.

The cryptocurrency market showed resilience as Bitcoin climbed past $78,000, logging multiple consecutive days of positive gains. The digital asset shrugged off macro headwinds from the Federal Reserve's rate hike and the legislative collapse of the CLARITY Act in the U.S. Senate. Regulatory focus has now shifted to alternative paths, with the Commodity Futures Trading Commission advancing its own independent package for crypto market rulemaking.