Hawkish Fed Signals Rate Hike on Horizon Amid Persistent Inflation Fears

Wednesday's Federal Reserve decision has left investors viewing the central bank as hawkish and potentially on track to raise interest rates in September.

The S&P 500 recorded its worst second 'Fed day' for a new chief in modern history, according to Bespoke Investment Group, with Wall Street broadly interpreting the Fed's decision as a signal that inflation remains a top priority.

Federal Reserve Chair Kevin Warsh spoke at a news conference after the decision, but his commentary and the dissenting coalition of policymakers only reinforced investors' growing confidence that the next move will be an increase in interest rates.