Wall Street gyrates after Fed hikes interest rate to battle inflation
NEW YORK — Wall Street whipsawed on Wednesday after the U.S. Federal Reserve raised its key interest rate for the first time in over three years to fight stubbornly high inflation stemming from soaring crude oil prices during the U.S.-Israeli war on Iran. In its accompanying statement, the Fed said its decision was unanimous and more tightening is likely in the near future to effect a timelier…
Wall Street experienced significant volatility on Wednesday after the U.S. Federal Reserve increased its key interest rate for the first time in over three years, aiming to combat persistent inflation driven by high crude oil prices resulting from the U.S.-Israeli conflict with Iran. The Federal Open Market Committee (FOMC) unanimously decided to raise the target range for the federal funds rate by 25 basis points, according to its statement.
Fed Chair Jerome Powell stated that further rate hikes are likely in the near future to bring inflation down more rapidly. This decision, which was anticipated, came after Fed Chair Kevin Warsh's hawkish remarks during a recent economic forum in Jackson Hole. The unanimous nature of the decision surprised some analysts, indicating the Fed's seriousness in tackling the inflationary pressures.
Investors will closely examine Warsh's comments during the press conference, seeking clarity on the central bank's reasoning behind the rate hike and future policy intentions.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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