The Federal Reserve has just announced a 25-basis-point rate hike, raising the upper bound of the interest rate from 3.75% to 4%. This is the first rate hike since 2023. Moreover, it was approved unanimously. Last time there was disagreement of 9 to 3, but this time everyone is aligned. In its statement, it said inflation is still too high; raising rates will help inflation return to the 2% target more quickly. It also increased the 2026 core PCE inflation forecast from 3.3% to 3.4%. U.S. Treasury yields jumped straight to 4.65%. U.S. stocks reversed and headed downward, while gold fell from 4,360 to below 4,320. $BTC and $ETH just followed that selloff too, but there’s an interesting detail: in this statement, the Fed specifically emphasized that productivity growth is strong and capital investment is solid—wording that’s not quite like the cautious tone usually used when the Fed raises rates. The Fed is hiking while saying the economy is doing well. Is it setting the stage for larger moves later, or does it genuinely think the economy can withstand even higher interest rates? What do you think?