Fed Keeps Rates Frozen, Eyes on September Hike as Tech Stocks Plunge

The US Federal Reserve has maintained its benchmark interest rate at 3.6% for the fifth consecutive time, but the sentiment is shifting towards a potential hike in September.

In the latest meeting, 9 out of 12 committee members voted in favor of keeping rates frozen, while 3 argued for an increase. This change in stance suggests that interest rates may be used more aggressively to curb inflation.

Fed Chair Kevin Warsh emphasized his commitment to achieving a 2% inflation target and stated that the Fed's position is firm on price stability.

Market experts predict that over 70% of them believe the Fed will raise interest rates in September, which has led to a decline in high-tech stocks. Shares of Micron, a leading memory semiconductor stock, plummeted by 10%, and the Philadelphia Semiconductor Index dropped by 5.3%.