The Federal Reserve delivered its first interest-rate increase in more than three years under Kevin Warsh, who had been hired by Donald Trump to cut rates. Warsh and his colleagues acted in lock step, presenting a united position intended to reinforce the central bank’s authority over inflation and its independence. He offered no forward guidance and said he would not focus on any single data point. Markets nevertheless priced three additional increases, compared with the Fed’s dot plot projection of one hike this year. Goldman Sachs called for another move in October, saying consecutive increases would support a timelier return to the Federal Reserve’s 2% inflation target. The decision increases pressure on other central banks. The Bank of England is expected to hold rates today, although another split vote could make its guidance important as energy prices remain elevated and a November hike stays in focus. The Bank of Japan is considered almost certain to raise rates on Friday, while markets expect central banks in the U.S., Europe, Britain, Australia and New Zealand to tighten again by year-end. Short-term Treasury yields rose to their highest level since mid-2024, sending the dollar to a seven-week high. Longer-dated bonds gained relief as the Fed emphasized inflation control, with the 10-year Treasury yield below 5%. Asian stocks mostly rose, European equities were positioned to gain 0.5% at the open, Nasdaq futures rose 0.6% and S&P 500 futures added 0.5%. The broader market is adapting to recurring supply shocks, hotter-than-preferred inflation and interest rates above investors’ previous expectations. Thursday’s key events include the Bank of England rate decision, final August Eurozone CPI figures and U.S. weekly jobless claims.