Fed holds interest rates steady after cliffhanger meeting, but three officials dissent
The US Federal Reserve held interest rates steady, but the market reacted negatively with the Dow dropping over 1,100 points. Investors are expressing uncertainty following comments from Fed Chairman Kevin Warsh regarding inflation and economic policy.
Why it matters
Market volatility and Fed policy decisions directly impact global economic stability, retirement savings, and borrowing costs.
Link Copied! Dow sinks more than 2% and has worst day in over a year after Warsh remarks stir up volatility By John Towfighi A television station broadcasts Kevin Warsh, chairman of the US Federal Reserve, speaking after a Federal Open Market Committee meeting as traders work on the floor of the New York Stock Exchange on Wednesday. Michael Nagle/Bloomberg/Getty Images Stocks closed sharply lower Wednesday afternoon after the Federal Reserve held interest rates steady and markets tried to digest remarks from Fed Chairman Kevin Warsh.
The Dow tumbled 1,153 points, or 2.19%, and had its worst day since April 2025.
The S&P 500 sank 1.52%, and the tech-heavy Nasdaq dropped 1.74%. The Nasdaq is down about 9.8% since its record high in early June, putting it on the brink of a correction (a drop of 10% from a recent peak).
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