Wall Street falls as Federal Reserve raises interest rates

US stocks fell and pared early gains after the Federal Reserve hiked interest rates for the first time in three years to curb inflation, leaving the ASX set to slump.

Justin Tomlinson

Editor-in-Chief, Mora Discover

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Wall Street falls as Federal Reserve raises interest rates

The US stock market pared its early gains and moved lower after the Federal Reserve announced an increase to its main interest rate for the first time in three years. The central bank instituted the hike in a direct effort to bring the nation's high inflation under control. Alongside the rate increase, the Federal Reserve also signaled that more rate hikes may be ahead as officials continue to address elevated inflationary pressures.[1][2][3][4]

Wall Street equities fell into negative territory as Warsh spoke, spoking investors following the policy decision from the central bank. In the wake of the US stock declines and the Federal Reserve's rate move, Australia's ASX is also set to slump.[1][2][3][4]

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