Stocks head south after Fed raises rates
US stocks fell after the Federal Reserve announced the expected increase of its interest rates, despite warnings from President Donald Trump and concerns over a global market slowdown.
The fourth rate hike of 2018 lifted the target range for the Fed's benchmark overnight lending rate by a quarter of a percentage point to a range of 2.25 percent to 2.50 percent.
The S&P 500 Index briefly fell after the announcement, while the 10-year Treasury note went to its lowest point since late May.
The Fed’s forecast for US gross domestic product in 2019 was weaker than in September, but unemployment rate expectations remained low – at 3.5 percent.
Trump criticized the increase of the rate two days ago saying it would damage the economy with his sentiment supported by some investors.
By the end of trading on Wednesday, the Dow was down -1.49 percent to 23,323.79, its lowest close since November 2017. The S&P 500 and NASDAQ were also down as of closing time.
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