[Anatomy Overview]

After a three-year hiatus, the Federal Reserve has resumed raising interest rates, doing so unanimously by a vote of 12–0, and increasing the benchmark rate by 25 basis points to a range of 3.75% to 4%. This is a routine move, as failing to raise rates would make it difficult to calm the bond market—its top priority, which even Trump has had to accept. The dot plot indicates that there may be one more rate hike this year. As for whether this marks the start of a new round of tightening, it’s still too early to tell; the key will be oil prices, which in turn depends on what Trump does….