Fed Hikes Rates, S&P 500 Dips Amid Persistent Inflation & Strong Consumer Spending

The Federal Reserve raised interest rates for the first time since July 2023, causing an initial dip in the S&P 500. The move comes as inflation persists above the 2% target, driven by rising oil prices and increasing memory costs due to AI demand 🔗. Despite higher prices, Fed Chairman Kevin Warsh noted the economy's strength and robust labor markets, indicating confidence in handling the hike without recession. Investors are warned that lower consumer spending due to inflation could impact corporate sales 🔗.