The Federal Reserve unanimously raised its federal funds target range by 25 basis points to 3.75%-4.00%, its first increase in three years according to newer coverage, and officials indicated that at least one further increase this year remained under consideration. Chair Kevin Warsh said the move removed policy accommodation, indicating that policymakers did not view financial conditions as restrictive after the increase. Warsh cited geopolitics, including the Iran war and its energy shock, as one of three developments since July that informed the decision. He said officials had reassessed how the conflicts might unfold, while Michael Gapen, chief U.S. economist at Morgan Stanley, raised his forecast to three total increases this year from two. Treasury yields rose as markets reassessed the outlook. The rate-sensitive two-year Treasury yield reached its highest level in more than two years, while the 10-year yield traded around 5%, near its highest level since July 2007. The increase widened the South Korea-U.S. benchmark-rate gap to 1 percentage point and came as crypto markets and risk assets absorbed broader policy and geopolitical uncertainty.