The world's most influential central bank upped its cost of borrowing 25 basis points today. It was the Fed's smallest hike since March 2022.
America's policy rate is now its highest in over 15-years, and well into what policymakers call "restrictive territory."
Stock and bond markets around the world rallied on the Fed's decision. The bond market, which has been leading the Fed (not vice versa like the old days), drove yields lower. Canada's all-important 5-year yield, for example, dove 10 bps to 2.94%.