![]() ![]() Markets had initially rallied after Fed policymakers suggested in a statement that they might slow the pace of increases.īut those gains disappeared and stocks turned lower again after Powell delivered the news that the Fed may need to hold back the economy with more high-interest rates - suggesting the fight against inflation is far from over. It comes as the central bank is trying to fight high inflation by reducing economic demand - actions financiers warn could potentially thrust the economy into a recession. ![]() The benchmark rate increase is the fourth consecutive hike of that magnitude in four straight months, and it's the sixth this year. Overall, the index lost 505 points, or 1.6 percent, while The S&P 500 dropped 2.5 percent, and the Nasdaq Composite fell 3.4 percent.Īll three were in the green immediately after the Fed's announcement, during which Chair Jerome Powell signaled that interest rates will need to go higher than previously thought in order to tame unprecedented inflation not seen in decades. The anticipated decision saw the Dow take a nosedive, falling more than 500 points after seeing its best monthly rise in half a century on the last trading day of October. Stocks plunged Wednesday after the Federal Reserve raised interest rates by 75 basis points once again - for the fourth time in the same number of months. ![]()
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