Dow Tumbles Over 1,100 Points as Fed Holds Interest Rates Steady

The Federal Reserve's decision to hold interest rates steady sent shockwaves through Wall Street on Wednesday.

The Dow Jones Industrial Average plummeted over 1,100 points, marking its worst day in more than a year. This significant decline comes as investors continue to weigh the impact of inflation and interest rates on the US economy.

Federal Reserve Chairman Kevin Warsh acknowledged that inflation remains above the central bank's target of 2%, but he pledged to work towards restoring price stability.

The bond market also showed growing concern among investors, potentially putting upward pressure on mortgage rates. Business reporter David Goldman warned that consumers could see mortgage rates tick higher as a result.