Fed hits pause on interest rate hikes. Higher interest rates are the new normal — is the signal which Fed has sent to markets this time. They have made it absolutely clear that higher interest rates for longer is here to stay — in a hawkish pause. Unlike last meet, FOMC expects the rates to be 0.25% higher than current levels at the end of the year, which appears to be unlikely. Fed continues to signals a data-dependent progress on its current tightening cycle. Global bond market actions does not seem to be cheerful for equity markets and hence one has to be cautiously optimistic going ahead.