Wall Street falls as Powell signals about the unpreparedness to reduce the pace of rate hikes

There was a sharp drop in US stock indices on Wednesday. The fall in indices came after statements made by Fed Chair Jerome Powell shattered initial optimism about the Fed's policy statement. The statement said that interest rates would be increased by 75-basis points, but signaled that there is still a possibility of smaller rate hikes.

According to Reuters, investors were looking forward to a 75 basis point rate hike, hoping that the Fed would signal its readiness to start downsizing the rate hikes during its meeting in December.

However, Fed Chair Jerome Powell stated that it was too early to think about pausing rate hikes, which led to a sharp decline in stocks.