The Federal Reserve increased the federal funds rate by 25 basis points, establishing a new target range of 3.75% to 4.00%. Projections from 16 of 18 officials suggest at least one further increase before the end of the year, a hawkish stance that markets interpreted as a sustained effort to combat persistent inflationary pressures. Consequently, the two-year Treasury yield climbed to 4.734%, while the 10-year yield touched 5.00% and the dollar index advanced to 100.25.

Spot gold fell 0.72% to $4,261.80 per ounce, while silver dropped 1.16% to $62.82. The market remains sensitive to these shifts, as the allure of non-yielding assets wanes when real yields rise. Investors are now turning their attention to upcoming economic reports, including jobless claims and housing starts, to gauge whether the broader economy maintains the resilience required to withstand further restrictive policy. Crude oil prices also retreated, with Brent settling at $105.83 and WTI at $102.43, as increased supply from Saudi Arabia provided a brief cushion against regional volatility in the Strait of Hormuz.