Dow falls 500 points in worst day for new Fed chair since 1994

Source: msn.com

Story by Bruce Golding • 2h •


The Dow Jones Industrial Average fell more than 500 points Wednesday — erasing early gains after new Federal Reserve Chairman Kevin Warsh held his first policy meeting and played his cards close to the vest afterward.

The broader S&P 500 also dipped 1.2 percent in the worst showing for a new chair on “Fed day,” with the losses mounting as Warsh spoke to reporters following the latest two-day meeting of the Federal Open Market Committee, CNBC reported.

The tech-heavy Nasdaq fell even more and was down 1.4 percent.

The declines, which pushed the Dow 1 percent lower, came after the Fed kept its key interest rate unchanged and nearly half of its policymakers said they could support a rate hike later this year, according to The Associated Press.

“He is absolutely telling you that he plans on delivering on price stability,” DoubleLine Capital CEO Jeffrey Gundlach said of Warsh on CNBC. “That means...we’re not going to have such easy money policy as everybody thought maybe Chairman Warsh would do back in the first quarter of this year, when everyone was counting on rate cuts.”.............................







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— Reuters (@reuters.com) 2026-06-17T18:28:08.906Z