On Wednesday, September 16, 2026, television stations broadcast Federal Reserve Chairman Kevin Warsh speaking after a Federal Open Market Committee (FOMC) meeting while working as a trader on the floor of the New York Stock Exchange (NYSE) in New York, USA.
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of Dow Jones Industrial Average It fell on Wednesday after the Federal Reserve raised interest rates for the first time in three years and central bank Chairman Kevin Warsh emphasized persistent inflation.
The Dow Jones Industrial Average fell 631.21 points, or 1.21%, across 30 stocks. goldman sachs Lead the way down the lower path. The blue chip average ended the day at 51,461.90. of S&P500 It fell 0.45% to end at 7,551.81. Nasdaq Composite It closed 0.01% lower at 25,978.42. All three stocks were up at one point in trading before the Fed took action and Mr. Warsh spoke at a news conference.
In a unanimous decision, the Fed raised the overnight rate by a quarter of a percentage point and lowered its target range to between 3.75% and 4%. This is the first rate hike by the central bank since July 2023, and the central bank has also hinted at the possibility of further rate hikes before the end of the year.
Stocks initially rose as widely expected, but then fell after Mr. Warsh’s press conference reiterated that inflation risks had not improved. of 10 year treasury Yields traded above 5% amid concerns that the Fed is still lagging behind in combating inflation after Wednesday’s interest rate hike.
“The plain fact is that inflation is too high and has been there for too long,” Warsh said at a news conference after the announcement. “This summer’s inflation statistics do not suggest that the underlying trend has improved significantly.”
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Art Hogan, chief market strategist at B. Riley Wealth, said that even if what the Fed offers is “within consensus,” Warsh’s “more hawkish” comments could mean yields will continue to rise for some time.
“The market is currently taking cues from the 10-year Treasury yield rising above 5%, which is a huge psychological level,” Hogan said. He added that this reaction in the yield curve and the idea that inflation will remain high for an extended period of time “both could be headwinds for markets in the near term.”
Major banks fell as a result of this decision. bank of america and wells fargo Stocks each fell nearly 3% on concerns that rising interest rates would slow loan growth and the economy. american express Goldman Sachs shares also fell nearly 4%.
U.S. diesel prices hit $6 a gallon for the first time on Friday amid economic pressures and continued supply constraints from the wars in Ukraine and Iran. Additionally, oil prices are currently hovering above $100 per barrel.
intel Shares rose 4% after reports that the company was in talks with the South Korean memory giant, helping to stem losses on the Nasdaq. SK Hynix Manufacture semiconductors in the United States
