Fed Raises Rates for the First Time in Three Years: A New Era for Gold, Crypto and Stocks The Fed raised rates 25 bp to 3.75%–4.00% at the Sept. 15-16 FOMC meeting. The unanimous decision was its first hike since 2023. Under Kevin Warsh,the Fed said inflation is“too high and has been high for too long.” DECISION SUMMARY Policymakers voted 12-0 to raise rates from 3.50%–3.75%. August headline CPI was 3.4% YoY and core CPI 2.4%. RATE EXPECTATIONS The dot plot points to another 25 bp hike this year. The Fed meets Oct. 27-28 and Dec. 8-9. Goldman Sachs and J.P. Morgan also expect a December hike as oil shocks keep inflation above 2%. Warsh calls current rates“not sufficiently restrictive.” MARKETS U.S. stocks initially rose while Treasury yields fell because the hike was priced in and the “one more hike” signal was less aggressive than feared. GOLD Higher rates, a stronger dollar and rising real yields pressure gold, while geopolitical tension and inflation support safe-haven demand. Persistent tightening could weigh on gold, but geopolitical risks could offset pressure. CRYPTO Rate hikes tighten liquidity and reduce risk appetite, creating a headwind for Bitcoin and altcoins. The initial reaction was limited because the move was expected. Key drivers are liquidity, the dollar, real yields and Bitcoin’s “digital gold” narrative. Continued tightening could restrict inflows; aggressive leverage remains risky. STOCKS Higher rates pressure high-valuation growth and technology stocks. Banks may benefit from margins, while uncertainty can weaken lending. OTHER ASSETS Dollar — Hawkish policy supports the dollar. Bonds — 10-year yields above 5% could trigger repricing. Oil — Iran-related supply risks can keep inflation elevated. Emerging markets and TRY — Stronger dollars and higher U.S. yields increase pressure. CONCLUSION The Fed has changed direction for the first time since 2023. Markets will focus on December, inflation, energy,real yields and dollar. $BTC