The Fed finally pulled the trigger, and markets spent the rest of the week arguing about how hawkish the follow-through would get. Chair Warsh and the FOMC delivered the first rate hike since 2023, lifting the funds range to 3.75%–4.00%, and a hawkish press conference shoved the Dollar Index higher by about 1.14% while the 10-year brushed 5%. Oil ripped toward the mid-$106s on Saudi pipeline and Red Sea risk, then faded once repair talk and ship-to-ship workarounds cooled the premium. The Bank of England held at 3.75% and sterling softened; the Bank of Japan hiked to 1.25% and the yen still sold off. Bitcoin shrugged the Senate's Clarity Act setback and pushed higher into Friday.