US Stocks Hold Steady as Fed Interest Rate Hike Looms

The US stock market held steady on Friday, despite expectations of an impending interest rate hike by the Federal Reserve to combat high inflation.

The S&P 500 rose 0.3%, while the Dow Jones Industrial Average was up 89 points or 0.2% as of 10:45 a.m. Eastern time, and the Nasdaq composite was 0.3% higher.

Fed Chairman Kevin Warsh emphasized the need to keep financial markets uncertain about interest rate decisions in order to allow them to react to incoming data rather than speculation.

However, Warsh also noted that 'short-term interest rates are the predominant tool' for the Fed to achieve its twin goals of keeping inflation low and the job market strong.