The Federal Reserve announced another rate hike, sending the market to a new 2018 low. One CEO blames it on ‘bad political choices.’
The U. S. stock market plunged 352 points Wednesday, dropping to its lowest level of the year, thanks to the Federal Reserve announcing it will increase interest rates a fourth time this year. The Dow Jones has dropped more than 1,250 points this week, while the S&P and Nasdaq continue one of their worst Decembers since the Great Depression.
Wednesday’s drop by the Dow comes after the day started with a 381-point boost — prior to the Fed’s statement.
Most thought the Fed would hit the pause button on any rate hikes for the remainder of 2018, with a slower clip of rate increases in the new year. Experts believe the Fed isn’t so much worried about the bottom line of the market, unlike investors and those living by it day-to-day.
«The market was hoping the Fed would signal it was about to pause or that it was considering at most one rate hike next year,» Nick Sargen, senior investment advisor for Fort Washington Investment Advisors, said in USA Today . «Instead, the (Fed’s latest outlook) indicates the majority of the Fed policy makers think there could be two hikes.
