Dow Tosed Over 400 Points as Fed Decision Looms

U.S. stocks fell sharply as the Dow Jones Industrial Average slid more than 400 points ahead of the Federal Reserve’s latest interest rate decision in New York. Economists largely expect the Fed, led by Chair Kevin Warsh, to keep its benchmark rate in a 3.5% to 3.75% range, though CME Group’s FedWatch Tool shows about a 31.5% chance of a 25-basis-point hike. Investor caution has increased amid inflation remaining above the Fed’s 2% target and crude oil prices rising on Middle East geopolitical tensions. Treasury yields inched higher, breaking a three-day decline, as markets positioned for the policy statement and press conference.