ASX set to slump, Wall Street falls as Warsh speaks after Fed raises rates

The US stock market initially gained but later pared those gains after the Federal Reserve raised interest rates for the first time in three years to combat high inflation. According to The Economic Times, Fed Chair Kevin Warsh stated that the US economy is strengthening, with improved new hirings, private sector earnings, and business capital investment.

The Federal Reserve increased the interest rate range by 0.25% to 3.75%-4%, as reported by multiple sources including The Economic Times and Quartz. The Fed's decision was unanimous, and they indicated that more tightening is likely in the near future to reduce inflation.

Wall Street experienced a whipsaw effect following the Fed's announcement, with investors awaiting Warsh's press conference comments for further details on the central bank's rationale and future plans, as noted by The Korea Times.

Brief written by urgent.news from The Sydney Morning Herald, The Age, The Economic Times - Top News, The Korea Times, Quartz — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.