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BackThe Fed raises interest rates for the first time in more than three years, and Wall Street's three major indexes close lower
The Fed raises interest rates for the first time in more than three years, and Wall Street's three major indexes close lower
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自由时报44 minutes agoBusiness2 min readChinaView original

The Fed raises interest rates for the first time in more than three years, and Wall Street's three major indexes close lower

Federal ReserveRaise interest rateswall street

Quick Look

  • Federal Reserve (Fed) raised interest rates for the first time in more than three years, raising the federal funds rate target range to 3.75% to 4%.
  • The market's doubts about the extent of subsequent tightening increased.
  • The Dow Jones closed down more than 630 points, the S&P 500 fell 0.45%, and the Nasdaq fell slightly by 0.01%.

AI-generated summary

Why It Matters

The U.S. Federal Reserve raised interest rates for the first time in more than three years, raising the interest rate target range to 3.75% to 4%, aiming to combat persistently high inflation.

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[Instant News/Comprehensive Report] The U.S. war against Iran caused crude oil prices to soar, exacerbating high inflation. The U.S. Federal Reserve (Fed) raised interest rates for the first time in more than three years to combat inflation. The market's doubts about the extent of subsequent tightening increased. The three major U.S. Wall Street stock indexes closed lower on the 16th.

According to comprehensive foreign media reports, the Federal Open Market Committee (FOMC) unanimously agreed to raise interest rates by 1 point on the 16th, raising the target range of the federal funds rate to 3.75% to 4%, which is the first time the Fed has raised interest rates since July 2023. Fed Chairman Kevin Warsh said that the Fed's main focus is to maintain price stability. "It is clear that inflation is too high and has lasted for too long."

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Trump: Fed should cut interest rates by at least 1%

U.S. President Trump later issued a statement stating that U.S. interest rates should be lowered to 1% or even lower, and once again urged the Federal Reserve to cut interest rates quickly. U.S. stocks briefly rose after the decision was announced, but as Fed Chairman Bush reiterated his anti-inflation stance, the market's doubts about the extent of subsequent tightening increased. The Dow Jones eventually fell by more than 630 points, closing at its lowest level since June 12. The S&P 500 index fell 0.45%, writing its lowest closing price since July 31.

In terms of focus stocks, the Philadelphia Semiconductor Group rose more than it fell. AMD rose 1.65%, Broadcom edged up 0.07%, Huida rose 0.82%, and Qualcomm fell 1.58%. In terms of Taiwan stock ADRs, TSMC ADRs rose 1.23% to close at US$417.72 per share; UMC ADRs rose 4.26% to close at US$22.53 per share.

The Dow Jones Industrial Average fell 631.21 points, or 1.21%, to close at 51,461.90 points.

The S&P 500 index fell 33.92 points, or 0.45%, to close at 7551.81 points.

The Nasdaq index fell slightly by 3.14 points or 0.01% to close at 25978.43 points.

The Philadelphia Semiconductor Index rose 0.63% or 70.56 points to close at 11,246.11 points.

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What to Watch

AI outlook — possibilities, not facts

  • The Fed will decide whether to continue raising interest rates depending on inflation in the next few meetings.

    Likely · Within months

  • U.S. stocks will remain volatile in the short term, and the semiconductor sector may continue to lead the way

    Possible · Within weeks

Open Questions

  • What will be the scope and pace of subsequent interest rate increases?
  • When will inflation come down significantly?
  • How much impact will raising interest rates have on U.S. economic growth?

Related Topics

Federal Reserve
PeopletrumpWashu
OrganizationsFederal Reserve BoardFederal Open Market Committee
PlacesUnited Stateswall street
TopicsRaise interest rateswall streetDow Jones IndexS&P 500NasdaqPhiladelphia Semiconductor Index
This article was originally published by 自由时报.

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