The S&P 500 and Nasdaq closed down by more than 1% on Wednesday, as traders bet that the Federal Reserve's next move would be a rate hike after new Fed Chair Kevin Warsh highlighted the need to tame inflation and other policy makers projected rising interest rates later this year.
The Fed left rates unchanged as was widely expected but new quarterly projections showed nine central bank officials expect at least one rate hike by the end of 2026. The policy statement removed previous language that had flagged the likelihood for rate cuts this year.
