The Fed raises rates by 50 basis points to the highest level since 2007.
Chair Jerome Powell said the Federal Reserve is not close to ending its anti-inflation campaign of interest-rate increases as officials signaled borrowing costs will head higher than investors expect next year.
The S&P 500 index dropped as investors digested the news. Let's review S&P 500’s performance on FOMC days in 2022.
“We still have some ways to go,” Powell told a press conference on Wednesday in Washington after the Federal Open Market Committee raised its benchmark rate by 50 basis points to a 4.25% to 4.5% target range.
Policymakers projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 — a higher level than previously indicated.
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