Stock market news live updates: Stocks fall after Fed lifts rates by 0.50% to highest since 2007

U.S. stocks sank Wednesday afternoon after the Federal Reserve delivered its seventh and final interest rate increase of 2022.

The central bank lifted its key policy rate by half a percentage point, slowing the pace of hikes from 0.75% across the prior four meetings. The move brings its federal funds rate to a new range of 4.25% to 4.5%, the highest level since December 2007.

All three major averages reversed earlier gains following the decision. The S&P 500 (^GSPC) slid 0.7% and the Dow Jones Industrial Average (^DJI) fell 160 points. The technology-heavy Nasdaq Composite (^IXIC) tumbled 1%.

Investors will assess remarks from Fed Chair Jerome Powell at 2:30 p.m. ET.

Fresh economic forecasts from the Fed that accompanied the decision show officials now see benchmark interest rates peaking at 5.1% in 2023, 50 basis points higher than the previously projected 4.6% in September. Officials then see rates coming down to 4.1% in 2024, slightly higher than previously projected.

Wednesday’s…

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This article was written by and originally published on finance.yahoo.com