U.S. stocks slip after the Fed raises interest rates, hints more hikes may be on the way
Summary
U.S. stocks fell after the Federal Reserve raised its main interest rate for the first time in three years. The Fed also indicated it may raise rates further to help control high inflation.Key Facts
- The Federal Reserve increased its key interest rate on Wednesday.
- This was the first rate hike in three years.
- The S&P 500 dropped by 0.4%.
- The Dow Jones Industrial Average fell 631 points, a 1.2% decline.
- The Nasdaq composite was nearly unchanged, slipping less than 0.1%.
- Higher interest rates can slow economic growth.
- Higher rates tend to lower stock prices and other investment values.
- The Fed’s goal is to reduce high inflation in the U.S. economy.
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