The U.S central bank signaled it may raise rates a total of four times this year. In a press conference following the rate announcement, Fed Chairman Jerome Powell indicated that the U.S. economy is in “great shape” and that further gradual tightening is warranted. USDJPY surged on the news, jumping over 40 pips to as high as 110.84 yen before reversing gains as markets were concerned about a looming trade war with China. The pair is currently testing the key 110 level. The White House is debating whether to carry though $50 billion of tariffs on Chinese goods after talks between the U.S. and China failed to agree on a trade deal.