The Latest Breaking News from Jerome Powell

The SPDR S&P 500 ETF Trust (NYSE: SPY) traded higher in a volatile session on Wednesday following the Federal Reserve's largest interest rate hike since 1994.

The Dow Jones rose after Fed Chair Powell hiked interest rates and gave a warning. Oil stocks fell after a Biden threat. Microsoft rose.

The Fed put the target range for the federal funds rate at 1.5% to 1.75%, adding that it "anticipates that ongoing increases in the target range will be appropriate."

The SPDR S&P 500 ETF Trust (NYSE: SPY) rebounded a bit from its early week downturn on Wednesday morning ahead of a critical Federal Open Market Committee interest rate decision at 2 p.m. ET. 

Federal Reserve expected to increase cost of borrowing by 0.75 percentage points to curb rising inflation

"If the Fed were to deviate from the market discount, logically it should then be going for a 100 basis point hike," said ING rate strategists.

Stock futures higher as Fed rate bets accelerate; Fed set for bold rate move after weeks of softer guidance; Tech bosses urge Congress to pass bill boosting chip sector support; Biden calls on oil companies to boost refining capacity, gas supplies and Bitcoin nears $20,000 level as global crypto crash…

Neither scenario seems great for stocks. The major indexes closed mixed Tuesday as bond yields kept soaring.

The Federal Reserve on June 15, 2022, lifted interest rates by 0.75 percentage point, the third hike this year and the largest since 1994. The move is aimed at countering the fastest pace of inflation in over 40 years.