Fed Hikes Interest Rates, Signals More to Come Amid Inflation Concerns

The Federal Reserve hiked interest rates by 25 basis points on Wednesday, signaling that there will be another rate increase later this year to combat inflation.

The S&P 500 Index fell to a six-week low, while the Dow Jones Industrial Average sank to its lowest level in three months. The Nasdaq 100 Index managed to close slightly higher.

Fed Chair Warsh stated that the rate hike was meant to 'remove a dose of accommodation,' and he emphasized that inflation is too high for too long, with many categories still rising above 3%. This fueled speculation about additional rate hikes.