New Delhi, Sept. 17 -- The US Federal Reserve raised the interest rate by 25 basis points on Wednesday, 16 September, largely in sync with what most experts expected due to sticky inflation. The US Fed rate hike brought the target range on the federal funds rate to 3.75% to 4%. Notably, it was the first interest rate hike by the central bank since 2023.

According to the new quarterly projections, Fed policymakers see the possibility of one more interest rate hike this year, followed by a hold in 2027.

The Fed's decision modestly impacted the US stock market, dollar, and long-dated bond yields.

Wall Street indices remained up, but pared gains, with the Nasdaq and S&P 500 witnessing volatility.

The dollar index moved up to 100.19, while...