Market Reacts to Fed Chief’s Outlook: Wall Street Opens Lower with Interest Rate Concerns

Wall Street opened lower following the announcement from Federal Reserve Chairman Jerome Powell that more interest rate hikes are likely. Powell stated that nearly all Federal Open Market Committee (FOMC) participants expect it to be appropriate to raise interest rates somewhat further by the end of the year. Futures traders expected a roughly 66% chance of a quarter point rate hike in June, according to the CME FedWatch Tool. The Fed’s decision to raise interest rates by a quarter of a percentage point has caused stocks on Wall Street to skid lower in late trading, with the S&P 500 finishing 1.65% lower for the day.