The Federal Reserve tightened and U.S. stocks tumbled. How bad was it? You’d have to go back more than seven years to find a worse reaction on a rate-decision day.
The S&P 500 fell 1.5 percent to the lowest close in 15 months after Fed Chairman Jerome Powell downplayed the recent turbulence in the financial market and said the central bank doesn’t plan to alter efforts to reduce its balance sheet. The slump was the worst for any Fed decision since September 2011.