Although the FOMC decided to raise rates by 25 basis points, the move to accelerate the pace of future tightening caught financial markets off guard. According to the statement, the Federal Reserve is currently anticipating three rate hikes for 2017 instead of the two hikes projected in September, adding to the hawkishness of the latest decision as the economy approaches full employment. The dollar immediately reacted to the development, with the US Dollar index rising to a 14-year high while slamming precious metals and stocks lower. During the press conference, Federal Reserve Chair Janet Yellen was repeatedly questioned about President-elect Trump’s proposed stimulus measures. In her remarks, she stated that the economy might not require stimulus and that instead the government should pay more attention to the debt-to-GDP ratio. Gold fell precipitously following the announcement, tumbling as low as $1134.81 per troy ounce.