The US central bank announced March 15 that it has decided to raise its benchmark interest rate to a target of 0.75% to 1%. It also hinted at more rate hikes down the road.
Federal Reserve Board Chair Janet Yellen said the main take-away from the move is that "the economy is doing well."
She said in a press conference, "We have confidence in the robustness of the economy and its resilience to shocks."
Both the S&P 500 and Dow Jones industrial average popped following the announcement. The Dow was up 112 points and the S&P 500 rose 19 points by the close.
Business Insider spoke with J.J. Kinahan, chief market strategist at TD Ameritrade, after the closing bell to get his impression of how the market reacted to the announcement.
"I was surprised by the depth of the reaction, if you will," Kinahan said."Everyone knew this was coming for the last 2 and a half weeks."
"We got the news we were expecting, so the positive reaction is surprising," he added.
Kinahan expects the market to now turn its attention to the fiscal policy initiatives that Trump has proposed, which many people view as a potential tailwind for the economy.
"On the policy front, the market is waiting with bated breath on the tax plan and repatriation," he said. "Now that we got the rate hike the focus of the market is going to turn to Trump."
Kinahan said the market showed a little bit of impatience for those proposals last week when it witnessed three days of declines.
"There was some pressure on stocks towards the end of last week and the only explanation I can think of is that the market is getting impatient waiting for the details surrounding these proposals," he said.
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