Stocks plunge after Fed hikes rate for first time in three years
Markets spooked by projections that signal growing support for further tightening
Stocks fell after the Federal Reserve raised interest rates for the first time in over three years to combat inflation. According to the Financial Post, the rate hike caused stocks to drop to their lowest level since July.
The Fed's decision was unanimous, and the central bank signalled the possibility of further policy tightening. The Korea Times reports that investors are awaiting comments from Fed Chair Kevin Warsh at a press conference for more details on the decision.
The rate hike is aimed at reducing inflation, which has been driven by soaring crude oil prices. The Korea Times also mentioned a conflict between the US and Israel against Iran, but the Financial Post did not.
Brief written by urgent.news from Financial Post, The Korea Times — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
