00:00The S&P 500 and Nasdaq closed down by more than 1% on Wednesday, June 17,
00:06as traders bet that the Federal Reserve's next move would be a rate hike after new Fed chair Kevin Walsh
00:12highlighted the need to tame inflation and other policymakers projected rising interest rates later this year.
00:19The Fed left rates unchanged as was widely expected, but new quarterly projections show
00:24nine central bank officials expect at least one rate hike by the end of 2026.
00:31The policy statement removed previous language that had flagged the likelihood for rate cuts this year.
00:41Breaking with past practices by Fed chiefs, Walsh did not submit an interest rate path projection
00:46as part of quarterly forecasts. He told reporters the central bank would deliver on price stability.
00:53Policymakers had been widely expected to hold interest rates unchanged at a 3.5% to 3.75% range
00:59as they wrestled with inflation pressures from the oil price spike during the Iran war.
01:04After the meeting, trader bets that rates would hold steady by year-end had dwindled to 15.7%
01:09from 40% on Tuesday, according to CME Group's FedWatch tool.
01:13Expectations for a 25 basis point rate hike by December were at nearly 38%,
01:19while the profitability for a 50 basis point hike was nearly 33%.
01:23The S&P 500 lost 91.25 points or 1.21% to end at 7,420.10 points,
01:33while the Nasdaq Composite lost 354.69 points or 1.34% to 26,021.66.
01:41The Dow Jones Industrial Average fell 507.12 points or 0.98% to 51,492.55.
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