The Federal Reserve raised interest rates on Wednesday for the first time in three years, followed by a press conference from Chair Kevin Warsh hinting at further hikes. The S&P 500 dropped 1%, heading toward its lowest close since July. The Dow Jones fell 1.7%, more than 700 points, with financial shares leading the decline. The Nasdaq Composite fell 0.8%. The 10-year Treasury yield held near 5%, its highest level since 2007, and the dollar index climbed 0.6% to its strongest since late July. Warsh suggested that at 3.5%-3.75%, rates were not restrictive enough, refusing to endorse the Fed’s own projections and declining to provide a clear path forward, triggering a broad selloff in equities.
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