Fed Chair Warsh's Interest Rate Hold Sparks Market Concerns

The S&P 500 plummeted by 1.52% after the Federal Reserve's decision to keep interest rates at 3.5%, despite a 4.1% PCE inflation rate that has been above the Fed's 2% target for five years.

Fed Chair Kevin Warsh faced intense questioning during his press conference, where finance reporters pressed him on why he didn't raise interest rates to combat high inflation.

The bond market was particularly critical of Warsh's decision, with some analysts calling it a 'central-bank credibility shock' and questioning the Fed's ability to effectively manage inflation.