Fed to raise rates tonight, but markets watch for signals on what comes next

At 8 p.m., the U.S. Federal Reserve's decision will be announced — markets price in a better than 90% chance of the first U.S. interest rate hike since July 2023. Paradoxically, the move itself may not determine the dollar's direction, as other central banks globally are also pricing in aggressive hikes. For investors, the key will be signals about the Fed's future monetary policy path.