The Federal Reserve raised interest rates by 25 basis points to a midpoint of 3.875%, marking its first hike since 2023 in response to persistent inflation. This move, along with forecasts for another potential hike, drove the 10-year Treasury yield to 5.04%, its highest level since 2007. Markets experienced volatility as the S&P 500 ended lower while oil prices and bond yields surged. Additionally, record diesel prices are pressuring the trucking and automotive industries, further contributing to inflationary concerns.
