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