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As expected, central banks have started acting on the potential repercussions of the European Union-United Kingdom breakup. Prior to the referendum, Federal Reserve Janet Yellen said Brexit might have substantial consequences which could affect the economy and financial markets worldwide.

Markets have expected the UK will stay in the region. But British people have spoken. Last week’s voting showed 51.9% backed exiting the EU, while 48.1% wanted to remain. Following the referendum, David Cameron lodged his resignation as the country’s premier. Jeremy Corbyn is facing an intense leadership challenge within the Labour Party. Boris Johnson is plotting his plan to become Cameron’s successor. The British pound has fallen unceasingly, hitting its 31-year low. Oil prices slumped. Global markets have become more erratic than ever. And investors are seeking the solace from safe haven assets.

Now that Britain has called it quits with the bloc, what is in store for the Fed?

The US economy has moderately improved through the years. Gross domestic product is growing steadily. The unemployment rate is still below 5%. Whilst America has withstood turmoils to and fro, certain experts have cautioned the breakup between Europe and Britain could have an inimical effect in the US.

Yellen once hinted a Brexit could reshape projections and risk appetite among American investors, which could influence overall market sentiment. Fed governor Lael Brainard reverberated Yellen’s remarks, saying a hostile reaction in European markets could ripple through markets around the globe.

Looking at currency markets, the US dollar’s value may witness an undesirable surge versus the sterling. The euro’s value is awaited to decline relative to the greenback as well as capital from Europe and the UK flow into the nation. But a firmer dollar hurts exports, which is perceived to hamper economic recuperation.

With the way things are going, anticipate the Fed to hike interest rates in July.