Dow falls 400 points after Fed hikes rates and Warsh says inflation still too high: Live updates

BREAKING: Dow falls 400 points after the Federal Reserve hikes rates and Chair Kevin Warsh says inflation is still too high, with one more increase signaled this year.

The Dow just dropped 400 points, and it wasn't the rate hike that did it.

The Fed raised by a quarter point today, unanimous vote, taking the target range to between 3.75 and 4 percent. First hike since July 2023, and everyone saw it coming, futures had it above ninety percent. Stocks shrugged. Then Chairman Kevin Warsh stepped up to the podium, and you can see him here, and told the room the plain fact is that inflation is too high and has been for too long. He said this summer's readings show no meaningful improvement, and he signaled another hike before the year is out. That's when the selling started.

Financials led the Dow down 0.8 percent. Behind it all sits diesel, which hit six dollars a gallon on Friday for the first time ever, with crude still holding above a hundred. And remember, the White House wanted rates left alone. The Fed just told the President no, and promised to do it again.

This is Sara White, reporting for HIT.