The US Federal Reserve (Fed) announced on Wednesday that it raised interest rates by 1 yard, and Wall Street stocks fell in response.

(Reuters)

[Instant News/Comprehensive Report] The U.S. Federal Reserve (Fed) announced the March interest rate meeting decision on Wednesday, and the benchmark interest rate was raised by 1 yard (0.25 percentage points). 200 points, turned from red to black at the end, crashing 530 points.

TSMC's ADR bucked the trend and rose 0.13% to close at $92.62.

The Federal Reserve raised interest rates by one yard on Wednesday, bringing the benchmark interest rate to a target range of 4.75 percent to 5 percent, the highest since late 2007.

Members of the Federal Open Market Committee (FOMC) said further policy tightening was likely, while signaling an imminent pause in future rate hikes in light of recent turmoil in financial institutions.

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This is the ninth time that the United States has raised interest rates since March 2022. The FOMC pointed out that future interest rate hikes are uncertain and will largely depend on economic data.

Federal Reserve Chairman Jerome Powell's comments at the press conference are considered to mean that the central bank may be nearing the end of its interest rate hike cycle, but he believes that the "inflation struggle" is not over yet, and there is still a long way to go before inflation falls back to 2%. It's a long way to go, and it's likely to be bumpy.

Powell also vowed to use all tools to keep the banking system sound, but reiterated the central bank's commitment to keeping inflation in check.

The banking industry reversed course after rebounding in the previous two trading days. On Wednesday, the S&P Bank Index and the KBW Regional Bank Index fell 3.7% and 5.3%, respectively. First Republic Bank fell 15.5%. Its shares also fell 17.1%.

The Dow Jones Industrial Average fell 530.49 points, or 1.63%, to close at 32030.11 points.

The S&P 500 fell 65.90 points, or 1.65%, to close at 3936.97.

The Nasdaq Composite Index fell 190.15 points, or 1.60%, to close at 11669.96 points.

The Philadelphia Semiconductor Index fell 25.18 points, or 0.81%, to close at 3091.71 points.

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