The Weekly | Fed raises rates as bond yields and oil prices remain high - Wilson Asset Management

Australian equities finished the week largely flat as investors considered higher oil prices and several offshore monetary policy decisions. The US Federal Reserve raised its federal funds target range by 0.25 percentage points to 3.75-4.0%, marking its first rate hike in three years. US markets sold off following the announcement. Current expectations are that there will be at least one more rate rise in the next three months, with 16 of 18 Fed officials projecting at least one further increase this year. Meanwhile, diesel fuel prices in the US continued to rise to record highs. The US 10-year Treasury yield surpassed 5.0%, its highest level since 2007.