Fed sends shock waves with rate hike schedule

The US Federal Reserve raised the benchmark interest rate by 25 basis points on Wednesday, and indicated there could be three more hikes next year. The announcement triggered immediate fluctuations in global currency, bond and stock markets.

It is not this hike that has unsettled the markets, as this has long been anticipated and priced in; it is the Fed's proposed pace of hikes next year.

Although the Fed has been known for being changeable in making interest rate decisions, its proposed accelerated interest rate hike cycle for next year will have major repercussions for the global economy.