The United States Federal Reserve on Wednesday hiked key interest rates by 25 basis points to between 0.50% and 0.75%. Federal Reserve Chairperson Janet Yellen said Donald Trump’s election had put the central bank under a “cloud of uncertainty”. This is the second rate hike since last December.

Yellen said that the decision was taken keeping in mind strong job gains and faster inflation. “The rate increase should be understood as a reflection of the confidence we have in the progress the economy has made,” she said. The Federal Reserve chairperson added that five of the 17 Federal policymakers seemed to have boosted their interest rate outlook since September when Trump, during his campaign, promised tax cuts and increased infrastructure spending.

There are likely to be three more rate hikes in 2017, reported Reuters. According to market experts, there will also be three rate hikes each 2018 and 2019, till the rate levels off at 3%. Immediately after the rate hike was announced, yields on short-term Treasuries reached a five-year high while US stocks nosedived. The dollar .DXY rose against many currencies and gold touched a 10-month low. Oil prices also declined.

The rate hike may have a negative reaction from the Indian market, according to the Economic Times. “The Fed policy is slightly hawkish as indicated by three rate increases expected in 2017 compared with two rate increases expected in September’s statement,” Chief Executive Officer of Prabhudas Lilladher Ajay Bodke told the daily. Besides, the strengthening of the dollar may cause problems for India. Sudhanshu of Amrapali Aadya Trading & Investments told the Economic Times, “Foreign investors in Indian markets will withdraw their money and invest in the US market. In addition, the depreciation of the rupee will lead to higher current account deficit and higher inflation.”