Asian stocks edged higher after the Federal Reserve delivered its first interest-rate increase since 2023, unanimously lifting its benchmark rate by 25 basis points to 3.75%-4%. Fed Chair Kevin Warsh emphasized inflation, and policymakers’ projections indicated one more increase this year. Money markets priced about a 50% chance of an October hike and fully priced a December increase. U.S. equity futures strengthened, with Nasdaq 100 Futures up 0.6% and S&P 500 Futures gaining 0.7%, while Treasury yields retreated after Wall Street fell following the decision. The two-year yield dropped 1 basis point to 4.72%, and 10- and 30-year yields each declined about two basis points. DBS strategist Philip Wee said the decision underscored the Fed’s independence from the White House, bringing it into conflict with President Donald Trump, who has called for rates of 1% or lower. The MSCI Asia Pacific index rose 0.4%, with gains in South Korea, Japan, Australia, New Zealand, Singapore, Thailand and the Philippines, while Hong Kong, mainland China and Malaysia lagged. Semiconductor stocks were mixed amid concerns about AI spending and higher borrowing costs, while selected Hong Kong artificial-intelligence shares advanced. Investors now await the Bank of England and Bank of Japan decisions, alongside signs that the Fed’s more hawkish stance can contain inflation without causing a wider growth slowdown.