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[Fed Rate Hike Stabilizes Credibility, Market Focuses on Next Central Bank] ⑴ The Federal Reserve raised interest rates for the first time in three years, and policymakers expect at least one more hike this year. Chairman Warsh stated that the 25-basis-point move "removed a dose of easing." ⑵ Some believe the Fed is rebuilding its credibility in combating inflation, but uncertainty surrounding the rate hike path could still trigger volatility in stock and bond markets in the coming weeks. ⑶ US Treasury bonds followed the forward curve after the Fed's decision, with trading volume in 10-year Treasury futures significantly increasing during the New York morning session. ⑷ Japanese government bonds rebounded ahead of Friday's Bank of Japan meeting, as the yen and other Asian currencies weakened after the Fed's rate hike, putting more pressure on the Bank of Japan. ⑸ Markets are focused on the Bank of England's interest rate decision on Thursday. Most economists expect it to hold rates steady, but soaring energy prices could force some members to support a rate hike. ⑹ Chinese holdings of US Treasury bonds fell to approximately $618 billion in July, the lowest level since August 2008, reflecting a shift in Beijing's reserve management methods and a deepening economic rift between the two countries. (7) The U.S. House of Representatives passed a bill granting President Trump new tariff authorization, aimed at pressuring Russia's largest importer of oil and gas as a form of punishment for Moscow. (8) U.S. economic data released that day included August housing starts, building permits, initial jobless claims, the Philadelphia Fed Manufacturing Index for September, and August pending home sales. (9) The U.S. Treasury announced a multi-maturity Treasury bond issuance plan and auctioned 4-week, 8-week, and reopened 10-year Treasury Inflation-Protected Securities (TIPS), while also conducting liquidity repurchase operations.