Dow reverses gains after new Fed chief’s first policy meeting
Related: What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average fell over 500 points, with the S&P 500 and Nasdaq also declining, following the first policy meeting led by new Federal Reserve Chairman Kevin Warsh.
The Federal Reserve maintained its key interest rate, but nearly half of its policymakers indicated support for a rate hike later this year, with six favoring two quarter-point increases.
The Fed removed language suggesting a future rate cut, signaling heightened concerns about inflation and a commitment to achieving its 2 percent inflation target.
Chairman Warsh emphasized the Fed’s determination to reduce inflation, which reached 4.2 percent annually in May, its highest level in over three years.
President Donald Trump, who has previously called for lower borrowing costs, downplayed the Fed’s decision to hold interest rates steady, acknowledging a potential rate hike.
