Federal Reserve Chairman Jerome Powell is seen on a monitor in the forex dealings room of the KEB Hana Bank headquarters in Seoul.
Federal Reserve interest rate hike decision today: US stocks extended losses from the previous session on Tuesday in which the S&P 500 confirmed entering bear market territory as investors feared aggressive rate hikes by the Federal Reserve.
While the Dow Jones Industrial Average ended 151.91 points, or 0.50% lower, at 30,364.83, the S&P 500 closed out to enter bear market territory after sinking 0.38% southwards in one day. However, the tech-heavy Nasdaq Composite Index ended 19.12 points higher at 10,828.35.
The Federal Reserve’s two-day policy meeting began on Tuesday amid a surge in inflation in the United States. Federal Reserve Chairman Jerome Powell will announce the decision at 1800 GMT (11:30 PM in India) on Wednesday, with experts predicting an aggressive increase in the benchmark lending rate.
The Fed raised interest rates by 25 basis points in March and 50 basis points in May to strengthen the fight against inflation. But last week’s inflation data triggered talks of the Fed being bullish. Inflation in the US hit a new 40-year high in May, according to data released last week.
According to reports, the central bank may increase interest rates by 75 basis points on Wednesday. Just before the Fed meeting, Powell indicated that a big interest rate hike was on the cards.