Updated

The Federal Reserve's Federal Open Market Committee voted unanimously to raise interest rates by a quarter point, marking the central bank's first hike since 2023 and its first policy decision under new leadership described in coverage as chaired by Kevin Warsh. The move came after a week of market anticipation, with investors weighing whether the new Fed chair would prioritize inflation control over growth support. Markets reacted negatively to the decision, with the Dow Jones Industrial Average falling roughly 600 points as investors concluded that Warsh intends to remain aggressive on inflation rather than pivot toward easing. Analysts warned that further sharp swings in both stocks and bonds should be expected as markets adjust to the new leadership's hawkish stance.