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The US central bank on Wednesday raised its main interest rate for the tenth time in a row since March 2022, by a quarter of a percentage point. Many market participants are now waiting for a pause in these rate hikes, which raise the cost of credit for households and businesses. The probability of a recession, sharper than initially expected, is widely anticipated by the markets. The banking crisis has provided unexpected support for the Fed's fight against inflation, the Fed said in a statement issued after the meeting of its monetary policy committee.

Stocks saw substantial volatility following the Federal Reserve's monetary policy announcement on Wednesday before eventually ending the session mostly lower. With the decrease on the day, the major averages added to the steep losses posted on Tuesday.

After moving sharply higher over the course of the previous session, treasuries saw further upside during trading on Wednesday. Bond prices pulled back off their best levels going into the close but remained in positive territory.

In a widely anticipated move, the Federal Reserve on Wednesday announced its decision to raise interest rates by another quarter point. The Fed decided to raise the target range for the federal funds rate by 25 basis points to 5 to 5.

Poised to raise interest rates Wednesday for a 10th time, Federal Reserve officials are facing two competing economic trends that could make their future rate decisions more difficult and treacherous.