Fed Hikes Rates Amid Ongoing Inflation Concerns

The Federal Reserve raised interest rates by 25 basis points to 3.75% to 4%, in line with expectations, but US stocks fell after the decision.

Federal Reserve Chair Kevin Warsh said that monetary policy cannot directly lower oil prices or reopen the Strait of Hormuz, but argued that the central bank can prevent energy-driven price increases from spreading through the broader economy.

The Dow Jones fell 718 points while the S&P 500 declined 0.64% and the Nasdaq Composite was down 0.31%, with Bank of America and Wells Fargo each falling 3%, and JPMorgan Chase slipping 1.9%.