Investing.com -- Wall Street analysts described the Federal Reserve's latest interest rate increase as decidedly hawkish, after policymakers signaled more tightening to come.

The Fed raised its target range by 25 basis points to 3.75% to 4.00%, with an updated dot plot pointing to another hike this year, one more than projected in June. Chair Kevin Warsh said the move removed a dose of accommodation and that current rates were hard to describe as restrictive.

ING strategist Francesco Pesole's note was titled "As hawkish as it gets." The strategist said "everything about yesterday's FOMC meeting was hawkish," noting the dollar rallied 0.6% to a two-month high and the two-year swap rate jumped 10 to 12 basis points.

He said the dollar now sits on a structurally stronger footing, though risks are more balanced after the move.

Raymond James's Daniel Tamayo said the updated projections moved materially higher, implying two rate hikes this year versus one in June, with the market's odds of two 2026 hikes rising to about 83% after the meeting.

Erste Group's Rainer Singer highlighted Warsh's reiteration that "the FOMC must be confident that underlying inflation is moving towards its objective" before holding rates. He said energy prices and economic strength would determine how many more hikes follow, and expects one more.

BCA Research's Felix Vezina-Poirier said the move confirmed the start of a new tightening cycle, but one his colleagues expect to be mild and front-loaded, at two to three hikes.

UBS struck a more reassuring tone on equities, saying a measured tightening cycle should not derail the rally given resilient growth and strong earnings.