The U.S. Federal Reserve's latest policy meeting has prompted investors to reassess the interest rate outlook, with bond yields rising sharply after policymakers struck a more hawkish tone than markets had anticipated. Revised inflation forecasts and the Fed's updated "dot plot" suggested that officials remain firmly focused on bringing inflation back to target, even if that means keeping rates higher for longer.
Mitul Kotecha from Barclays said markets were caught off guard by the Fed's stance.
