Fed Hikes Interest Rates, Signals Further Increases Ahead

U.S. stocks slipped on Wednesday after the Federal Reserve raised its main interest rate for the first time in three years, signaling more increases may be ahead to control high inflation.

The Fed's decision to hike rates was expected by many investors, but the central bank's projections of further rate hikes sent a strong signal that it is committed to taming inflation, which has been running above its 2% target for several months.

Oil prices eased slightly on the news, with Brent crude falling 0.6% to $85.83 per barrel, but stocks remained cautious as investors weighed the impact of higher borrowing costs on economic growth.