The US Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00%, its first hike in three years. The accompanying projections and comments from Fed Chair Kevin Warsh signalled a hawkish tilt. Markets responded by raising expectations for another rate hike by year-end, lifting the USD and short-term Treasury yields, while gold held up well. Equities weakened overall, although losses were relatively modest outside the Dow Jones. Norbert Rücker, Head of Economics and Next Generation Research, discusses high oil, but even higher, diesel prices and why political interference is unlikely to derail the energy transition. Fixed income strategist, Afonso Borges, notes that bond markets have taken the Fed's communication mostly positively.