US Fed Rate Hike Highlights: Jerome Powell hikes policy rate by 25 bps despite bank turmoil

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US Fed Rate Hike LIVE: Dow tumbles 250 points after Fed hikes rates

The Dow Jones Industrial Average was down 250 points, or 0.8%, while the S&P 500 slid 0.5%. The Nasdaq Composite dipped 0.3%, reported CNBC.

US Fed Rate Hike LIVE: Powell slams Silicon Valley Bank management over lack of supervision

Powell said that management at Silicon Valley Bank “failed badly,” while exposing customers to “significant liquidity risk and interest rate risk." He added that stronger supervision and regulation is needed to prevent another string of bank collapses and deposit crisis, CNBC reported.

US Fed Rate Hike LIVE: Powell says committee considered a pause in light of the banking crisis

Jerome Powell said the rate-setting committee considered a pause in rate hikes in light of the banking crisis. "We did consider that in the days running up to the meeting," Powell said in the press conference, reported CNBC.

US Fed Rate Hike LIVE: Dow rises 100 points after Fed signals it’s nearing the end of rate hikes

The Dow Jones Industrial Average rose 100 points, or 0.3 percent, while the S&P 500 advanced 0.6 percent. The Nasdaq Composite climbed 0.9 percent.

US Fed Rate Hike LIVE: Powell says regional bank issues means tighter credit conditions

Powell acknowledged that the issues in the banking system in recent weeks will create tighter credit conditions.

"We believe however that events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and business, which would in turn result affect economic outcomes. It is too soon to determine the extent of these effects, and therefore too soon to determine how monetary policy should respond," Powell said.

US Fed Rate Hike LIVE: Bank deposit flows have stabilized, says Powell 

The banking system is resilient and deposit flows are back on track, Federal Reserve Chair Jerome Powell said. "Deposit flows in the banking system have stabilized over the last week," he said.

Powell said the powerful actions taken by the Fed, Treasury Department and FDIC demonstrate that depositors’ savings and the banking system are safe, CNBC reported.

US Fed Rate Hike LIVE: Fed is having a problem pivoting, says JPMorgan’s David Kelly

The Federal Reserve’s decision to increase interest rates by a quarter percentage point shows it is having a “problem pivoting,” according to David Kelly, chief global strategist at JPMorgan Asset Management, CNBC reported. "They really should have pivoted to a much more neutral stance," Kelly said.

US Fed Rate Hike LIVE: Jerome Powell says Fed will use all tools to keep banking system safe

Federal Reserve Chair Jerome Powell said the central bank will use all its tools to safeguard the banking system.

"Our banking system is sound and resilient, with strong capital and liquidity. We will continue to closely monitor conditions in the banking system and are prepared to use all of our tools as needed to keep it safe and sound," Powell said.

US Fed Rate Hike LIVE: Dollar falls after Fed raises rates, forecasts future hike

The dollar was lower on Wednesday following the US Federal Reserve's decision to raise interest rates by a quarter of a percentage point as expected. The Fed projected at least an additional interest rate increase of 25 basis points by the end of 2023.

The dollar index fell 0.465% at 102.680, with the euro up 0.62% to $1.0834. The Japanese yen weakened 0.43% versus the greenback at 131.88 per dollar, while Sterling was last trading at $1.2288, up 0.57% on the day.

US Fed Rate Hike LIVE: Fed forecasts just one more rate hike this year

The Federal Reserve will hike interest rates just one more time in 2023 before the central bank ends its inflation battle, according to its median forecast released Wednesday, reported CNBC.

The Fed kept the “terminal rate” unchanged from the last estimate in December at 5.1 percent, equivalent to a target range of 5-5.25 percent. The central bank took the benchmark federal funds rate a quarter percentage point higher to a target range between 4.75-5 percent, CNBC said.

US Fed Rate Hike LIVE:  S&P 500 rises slightly as Fed hikes rates by a quarter-point

The Dow Jones Industrial Average traded 56 points higher, or 0.3 percent, while the S&P 500 advanced 0.5 percent. The Nasdaq Composite climbed 0.8 percent, reported CNBC.

US Fed Rate Hike LIVE: The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans, a statement from FOMC said.

US Fed Rate Hike LIVE: The US banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks, FOMC's post-meeting statement said.

US Fed Rate Hike LIVE: Along with its ninth hike since March 2022, the rate-setting Federal Open Market Committee noted that future increases are not assured and will depend largely on incoming data, CNBC said.