Dow tumbles after Fed raises interest rates for first time since 2023

The Dow Jones closed down around 1.2% on Wednesday after the Federal Reserve announced its first interest rate increase since July 2023, according to CBS News. The US stock market had pared some early gains following the announcement.

The Federal Reserve raised the interest rate range by 0.25% to 3.75%-4%, as reported by The Economic Times. The Fed chair, Kevin Warsh, stated that the strengthening of the US economy and geopolitics pushing inflation higher were key reasons for the rate hike.

The Fed's decision was made in a 12-0 vote, with the federal funds rate expected to rise to 4.1 percent at the end of this year, according to Yonhap News. The increase aims to get the nation's high inflation under control.

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