Dow Posts Its Worst Day Of The Year After Federal Reserve Maintains Interest Rates

Topline

The Dow Jones Industrial Average tumbled to its worst day of the year Wednesday, falling over 2% after the Federal Reserve left interest rates unchanged as central bank officials have appeared conflicted on how to handle mounting inflation concerns.

Key Facts

The Dow closed down 2.2%, falling 1,153 points to its lowest point in over four weeks.

Despite the drop, the Dow is up 5.1% in the last six months of trading and has completely recovered from its slump in March that was informed by the war in Iran and rising oil prices.

The Federal Open Market Committee on Wednesday held interest rates between 3.5% and 3.75% in a 9-3 vote, conflicting with a unanimous vote last month to maintain interest rates, with the three dissenting votes supporting a 0.25% rate hike.

The committee’s statement provided a rosy picture of the economy, saying economic activity was “expanding at a solid pace” despite the Iran war.

Tangent

The S&P 500 and Nasdaq also slid Wednesday, falling 1.5% and 1.7%, respectively. Both indexes are up at least 5% since January.

Big Number

7.3%. That is how much the Dow has risen since the start of the year. Despite lows near the 45,100 mark in March, the index has jumped to and generally remained about 51,000 points since mid-June.

This is a developing story. Check back for updates.

This article was originally published on Forbes.com