Fed Holds Rates Steady as Wall Street Tumbles and Yields Soar

The Federal Reserve held interest rates steady at a range of 3.5% to 3.75%, sparking a sell-off on Wall Street and pushing Treasury yields to multiyear highs.

Despite rising inflation concerns, the Fed voted 9-3 against raising its benchmark lending rate, with three regional bank presidents dissenting in favor of a quarter-point hike.

The Dow tumbled 1,153 points, or 2.19%, marking its worst day since April 2025, while the S&P 500 and Nasdaq also declined sharply.

Bond yields surged significantly, with the 30-year Treasury yield jumping to 5.21%, its highest level since 2007, and the 10-year yield climbing to 4.68%.