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 outlets. In a statement, the Fed noted that economic activity is expanding at a solid pace, with robust productivity growth, capital investment, and resilient domestic spending.

Wall Street experienced a whipsaw effect following the Fed's decision, with The Korea Times noting that more tightening is likely in the near future to reduce inflation. The Fed's decision was unanimous, and investors are now parsing Warsh's comments for details on the central bank's rationale.

Brief written by urgent.news from The Age, The Sydney Morning Herald, 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.