Fed Hikes Rates Again, Sends Stocks Plummeting

The US Federal Reserve raised interest rates for the quarter by 0.25%, as expected, but signaled that at least one more hike is on the way this year.

Fed Chair Kevin Warsh emphasized the need to rein in accelerating inflation, which has been above target for too long.

The rate increase sent Wall Street stocks tumbling, with the Dow Jones falling 1.5%, the S&P 500 down 0.8%, and the Nasdaq Composite declining 0.4%.

The hawkish tone from Warsh's press conference also weighed on markets, despite some positive news for AI-linked companies.