Stock futures edge higher ahead of pivotal Fed rate decision: Live updates - CNBC
The Federal Reserve raised interest rates by a quarter percentage point, citing persistent inflation concerns. Despite the move being expected, markets fell as Fed Chairman Kevin Warsh signaled that higher rates may persist longer than anticipated.
Why it matters
Rising interest rates and hawkish central bank policy directly impact borrowing costs, mortgage rates, and overall stock market valuation.
The Dow Jones Industrial Average fell on Wednesday after the Federal Reserve hiked interest rates for the first time in three years and central bank Chairman Kevin Warsh highlighted persistent inflation.
The 30-stock Dow lost 631.21 points, or 1.21% with Goldman Sachs leading the way lower. The blue-chip average ended the day at 51,461.90. The S&P 500 dropped 0.45% to end at 7,551.81, while the Nasdaq Composite ended the session down 0.01% at 25,978.42. All three were higher at one point during the session before the Fed took action and Warsh spoke at a press conference.
In a unanimous decision, the Fed raised the overnight funds rate by a quarter percentage point, bringing the target range to between 3.75% and 4%. That marked the first hike from the central bank since July 2023. The central bank also signaled another hike could come this year.
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