The Fed announced a 50-basis point rate hike Wednesday, taking the borrowing rate to a targeted range of 4.25% and 4.5%, the highest level in 15 years. In addition, as per its median forecast released on the same day, the Federal Reserve will hike interest rates to as high as 5.1% in 2023 before the central bank ends its fight against the soaring prices.
While the market had earlier expected a stance reversal by the central bank, the Fed’s hawkish tone crushed investors’ optimism, sending stocks to sink.
