Federal Reserve Hikes Interest Rates, Sends Stocks into Decline

The Federal Reserve raised its main interest rate for the first time in three years on Wednesday, sending U.S. stocks into a downturn.

The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped by 1.2%. The Nasdaq composite was nearly unchanged after edging down by less than 0.1%.

Fed Chairman Kevin Warsh emphasized that inflation remains too high, and the U.S. economy appears to be strengthening, which could imply the need for further rate hikes.