1. Asian & Wall Street Equity Markets: Asian Bourses Open Higher Amid DJIA Correction

* Morning Movement: Asia-Pacific stock markets opened higher in Thursday morning trading. This positive movement occurred even though the main Wall Street indices closed lower overnight, led by the Dow Jones Industrial Average (DJIA -1.21%).

* Bond Yield Pressure: The decline on Wall Street was driven by the return of the 10-year US Treasury yield above the psychological level of 5.00% following The Fed's monetary policy announcement.

2. The Fed's Interest Rate Decision: First Rate Hike Since July 2023

* 25 bps FFR Hike: The Federal Open Market Committee (FOMC) officially raised the benchmark Federal Funds Rate (FFR) by 25 bps to 3.75% – 4.00% (from the previous 3.50% – 3.75%). This is the first interest rate hike by The Fed since July 2023.

* Signal of Further Hikes in 2026: Fed officials emphasized that the inflation rate remains too high, so this tightening is necessary to accelerate inflation's return to the 2% target.

3. Update on The Fed's Economic Projections (Summary of Economic Projections / SEP)

* Interest Rate Outlook (Dot Plot): The majority of FOMC members expect one more rate hike in the remainder of 2026 (a significant change from the June projection where members' views were split between hiking or holding).

* Long-Term Outlook: Of the 17 members, 8 expect 1 hike in 2027, 9 see no hike in 2028, and 10 expect no hike in 2029.

* Revised US Macro Projections:

* GDP Growth: Projected to grow faster at 2.3% in 2026 (vs. 2.2% June projection) and 2.4% in 2027 (vs. 2.3%).

* PCE Inflation: Projected to rise to 3.7% in 2026 (vs. 3.6% June projection), while the 2027 projection remains at 2.3%.

* Core Inflation (Core PCE): Expected to increase to 3.4% in 2026 (vs. 3.3%), but the 2027 prediction remains at 2.5%.

* Unemployment Rate: Expected to improve to 4.1% for 2026 and 2027 (down from the previous estimate of 4.3%). #FedRateWatch