The Fed’s Decision to Increase Interest Rates Triggers a Drop in Wall Street Indexes

US stocks fell on Wednesday as the Federal Reserve announced a 0.25% hike in its key interest rate for the ninth consecutive time.

The Dow Jones fell 1.6% to 32028.90 and the S&P 500 fell 1.7% to 3936.82.

The Nasdaq also fell 1.6% to 11,669.96.

It is noteworthy that the increase in interest rates is associated with the determination of the US authorities to fight inflation. The authorities are also keen to avoid further unrest in the banking sector in the wake of the failure of the Silicon Valley Bank and fears of a worsening crisis.

US Federal Reserve Chairman Jerome Powell said during a press conference that the Federal Reserve intends to learn from the current banking crisis, noting that financial conditions have also worsened.

Source: AFP.

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