The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

1543 ET - The Federal Reserve is signaling with its latest rate hike that it thinks rates will need to stay higher for longer to get inflation under control, UBS economist Jonathan Pingle says in a note. Officials clearly expect one more rate hike this year and plan to keep rates around 4.1% through 2027, with very slow rate cuts to follow through 2029, the economist says. By leaving its nominal policy rate at 3.6% at the end its forecast horizon, while inflation returns to 2%, suggests that the Fed think a funds rate over 3.5% is needed to tame inflation, Pingle says. "They have generally rethought the fundamental level of the real funds rate needed to achieve price stability over the next three to four years," he says. (dean.seal@wsj.com)

1539 ET - Fed Chairman Kevin Warsh made it clear in his press conference that he's not watching single data prints to influence policy decisions. "I was not waiting breathlessly on what any particular data was, whether it was retail sales this morning or a CPI print last week," Warsh told reporters. Some economists have noted that markets have become more data-point-dependent amid Warsh's dialed back communication approach. "Markets over time will come to understand how this Fed makes its decisions, what's relevant and not, and I wouldn't want to editorialize that for them beyond it," Warsh continued. (jessica.coacci@wsj.com)

1525 ET - After studying the Fed's dot-plot, Capital Economics says the Summary of Economic Projections suggests a limited appetite among policymakers for further hikes. While most officials penciled in one more hike for this year, the SEP also implies that the Fed may be content with just two hikes in total in this cycle, Chief North America Economist Stephen Brown says. But Brown thinks Fed officials are underestimating the potential for the unemployment rate to drop more, "meaning we are sticking with our forecast for a third hike in early 2027 as well," Brown says. (patrick.sheridan@wsj.com)

1522 ET - Many analysts had projected that the Fed's rate increase was intended to validate the central bank's credibility, as inflation has run above target for over five years. Chairman Warsh's comments at his press conference validated that argument. "Today's action starts to show we're serious about this, and we will deliver on the price stability objective," Warsh told reporters. "Warsh was appropriately hawkish in his press conference and sought to reinforce the Fed's credibility on restoring price stability while simultaneously bolstering his own," says Joseph Brusuelas chief economist at RSM. (jessica.coacci@wsj.com)

1512 ET - Cryptocurrencies are roughly flat on a 24-hour trailing basis after the Federal Reserve raised rates as expected. Sector leader Bitcoin is slightly higher than where it was 24 hours earlier, and half a percentage point higher than where it was this morning, according to data from CoinGlass. Other top coins are in the green as well. The market took a tumble on Tuesday after the Senate blocked an industry-friendly bill, setting up Wednesday's rate decision as the next big driver of price action. While higher interest rates make risky assets like crypto less attractive, the broader market seems to have priced in a rate hike, and a rate hold wouldn't have done much to loosen the tight backdrop that Bitcoin is currently facing, analysts at Glassnode say in a report. (dean.seal@wsj.com)

1444 ET - Precious metals are giving back gains after the Federal Reserve raised interest rates as expected. Equities have taken the news "relatively well," but "evidence of the Fed's hawkishness is in the slightly firmer U.S. dollar and lower gold price," Capital.com senior financial market analyst Kyle Rodda says in a note. "A special focus will be on the shape of the yield curve too as markets assess what impact policy is having on long-term inflation expectations." Gold for December delivery is off 0.1% at $4,327.10 a troy ounce and silver up 0.7% at $64.33 a troy ounce. (anthony.harrup@wsj.com)

1436 ET - The Fed hike, despite being expected, could help stabilize bond markets, Resonate Wealth's Alex Guiliano says in a note. The move "marks a clear pivot for the Federal Reserve from talking tough on inflation to specific action." Guiliano adds that "while we would not be surprised to see one more rate hike this year, this is a Fed that doesn't like to show its cards, which may only increase the market's anticipation before each of the next several Fed meetings, leading to more stock market volatility." (paulo.trevisani@wsj.com; @ptrevisani)

1435 ET - The big question now is whether the Fed rate hike is one and done or the beginning of another tightening cycle, according to TruStage's Steve Rick. "The Fed should give this increase time to work before determining how much additional restraint is necessary," Rick says. He thinks higher oil prices stemming from the continued conflict in the Middle East could keep inflation elevated, but warns monetary policy works with long and variable lags, and additional increases would put more pressure on consumers and businesses already facing elevated borrowing costs. (patrick.sheridan@wsj.com)

1431 ET - The failure of the crypto-friendly Clarity Act in Congress removes a positive catalyst for the crypto space but doesn't create any kind of new regulatory shock, Morgan Stanley analysts say in a research note. Regulation of digital assets in the U.S. has already moved materially over the past year, reducing the enforcement risks that historically constrained product development and institutional participation, the analysts say. While the failed vote may hurt near-term sentiment around crypto investing, the industry itself seemed prepared for it, given that prediction market odds for the vote passing had fallen by the time the vote was held, they say. "Disappointment largely priced in," the analysts say. (dean.seal@wsj.com)

1426 ET - Oxford Economics says they do not believe the Fed's unanimous decision to raise interest rates by 25 basis-points marks the beginning of another major tightening cycle. They think markets have too much tightening priced in over the coming year. "The accompanying projections suggest the key motive for raising rates was risk management," they write. Twelve officials see one more hike by the end of the year, and four officials see two more, the dot plot showed. "We now expect the Federal Reserve to deliver one additional 25bp hike later this year before falling inflation allows them to move to the sidelines," Oxford analysts says. (jessica.coacci@wsj.com)

1423 ET - The Fed hikes as expected, but the unanimous decision comes as a surprise "considering that lack of consensus seemed to be the theme with FOMC officials in the last few meetings," Monex USA's Juan Perez writes. An increase in the WSJ Dollar Index gains traction and the gauge is up 0.3%. "Naturally, the U.S. Dollar is gaining some momentum, although the decision was very much priced-in," Perez says. He expects markets to get more volatile during Chairman Warsh's press conference. The dollar strengthens 0.3% against the yen and 0.4% versus the euro. (paulo.trevisani@wsj.com; @ptrevisani)

1419 ET - A relatively muted reaction in the stock market from the Fed's move to hike rates by 1/4 percentage point to a range of 3.75% to 4.00%. The Fed statement says "Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability." The DJIA is flat at 52,082, the S&P 500 is up 0.3% to 7611 and the Nasdaq rises 0.7% to 26,168, all little changed from where they were prior to the Fed decision.