The Federal Reserve on Wednesday raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, and said it would begin trimming its bond holdings next month as a further step in the battle to lower inflation.
TheU.S.central bank set its target federal funds rate to a range between 0.75% and 1% in a unanimous decision, with further rises in borrowing costs of perhaps similar magnitude likely to follow.
On Wall Street, stocks seesawed after the statement then turned sharply higher after Fed Chairman Jerome Powell said at a press conference that the Fed was not actively considering raising rates 75 basis points at coming meetings.
MARKET REACTION:
STOCKS: The S&P 500 turned sharply higher was last up 1.89%
BONDS: The 10-year U.S. Treasury note yield seesawed and was down at 2.9188% and the 2-year yield fell to 2.6842%
FOREX: The dollar index extended 0.8% lower
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