Fed raises interest rates by 0.75 points to fight inflation

Stocks tumbled in volatile trading Wednesday after the Federal Reserve confirmed it was extending its interest rate hike campaign to combat inflation.

The Dow Jones industrial average, which recorded triple-digit swings in both directions, shed more than 522 points, or 1.7 percent, to close just shy of 30,184. The S&P 500 erased 66 points, or 1.7 percent, to end near 3,790. The tech-heavy Nasdaq dropped nearly 205 points, or 1.8 percent, to settle above 11,220.

Markets have been skittish for days in anticipation of the Fed’s decision. On Wednesday, policymakers raised rates by three-quarters of a percentage point for the third time since June. The Fed also boosted rates by 50 basis points in May and 25 basis points in March.

Source: WP