The Dow Jones Industrial Average fell more than 800 points at one stage after the Federal Reserve unanimously raised its federal funds rate target by 0.25 percentage point to 3.75%-4.0%, the first increase since July 2023. Selling was concentrated in financial stocks, while the Nasdaq Composite and S&P 500 also declined as Fed Chair Kevin Warsh’s comments were viewed as hawkish. The Fed’s projections showed 16 of 18 officials expecting at least one more increase before year-end, while inflation forecasts were revised higher and the 2% target was not expected until 2029. The decision came despite pressure from the White House to keep rates unchanged, with markets now focused on further hikes and incoming inflation data.