June 14, 2023 Fed interest rate and stock market news

From CNN's Krystal Hur, Alicia Wallace, Nicole Goodkind and Bryan Mena

Updated 12:50 AM ET, Thu June 15, 2023
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4:15 p.m. ET, June 14, 2023

Powell: The jury is still out for a July rate hike

U.S. Federal Reserve Board Chairman Jerome Powell spoke during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve today.
U.S. Federal Reserve Board Chairman Jerome Powell spoke during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve today. Drew Angerer/Getty Images

Fed Chair Jerome Powell stressed that a decision hasn't been made whether to continue pausing next month or hike interest rates.

He also said that officials "didn't discuss anything about going to an every-other-meeting kind of an approach or really any other approach." The focus was solely on the current meeting's decision, he added.

But he said the July meeting will be "live," meaning officials are still open to any outcome.

After Powell's press conference, more investors now predict the Fed will raise rates next month compared to earlier in the week, according to the CME FedWatch Tool.

The Fed under Powell generally does what markets anticipate it will do at its next meeting. That's not a coincidence: Powell's said repeatedly that he doesn't like to surprise markets

"We don't go out of our way to surprise markets or the public," he said on Wednesday. "At the same time, our main focus has to be on getting the policy right."

4:05 p.m. ET, June 14, 2023

Stocks close mixed after Fed pauses rates and hints at more hikes to come

Stocks closed mixed on Wednesday, paring back earlier losses after a volatile trading session jolted by the Federal Reserve's signal that it could continue hiking rates this year after June's pause.

Fed policymakers on Wednesday voted unanimously to hold rates steady, matching market expectations. But the central bank signaled that it could take at least one more rate hike this year to tame inflation, sending stocks lower.

Future hikes depend on what upcoming economic data shows: The job market remains hot, and while inflation has cooled somewhat, it remains above the Fed's 2% target, which Fed Chair Jerome Powell mentioned on Wednesday.

Meanwhile, shares of UnitedHealth fell 6.4% on Wednesday after the company warned seniors are catching up on procedures delayed during the height of the Covid pandemic, which will likely lead to higher medical costs.

Gold prices moved higher as investors searched for havens in the face of possible higher rates.

Tech stocks also rose. Apple shares gained 0.3% to $183.95, reaching a record high.

Nvidia rose 4.8%, Micron increased 1.8% and Microsoft added 0.9%.

The Dow fell 231 points, or 0.7%.

The S&P 500 slipped 0.08%.

The Nasdaq Composite rose 0.4%.

As stocks settle after the trading day, levels might change slightly.

3:37 p.m. ET, June 14, 2023

Stocks mixed after Fed Chair Powell ends his press conference

A monitor displays a news conference with Federal Reserve chairman Jerome Powell as traders work on the floor at the New York Stock Exchange today.
A monitor displays a news conference with Federal Reserve chairman Jerome Powell as traders work on the floor at the New York Stock Exchange today. Seth Wenig/AP

Stocks fell Wednesday mid-afternoon after Federal Reserve Chair Jerome Powell addressed reporters following the central bank's rate pause.

Markets were initially displeased that the Fed signaled at least one more increase is coming this year, but they bounced back somewhat as Powell tried to reassure investors that the Fed is slowing its rate hike pace.

The S&P 500 rose 0.07% and the Nasdaq Composite added 0.2%, on track to snap four consecutive days of gains.

The Dow slid 205 points, or about 0.6%, on pace to break a six-day streak of gains.

3:22 p.m. ET, June 14, 2023

Interest rate cuts still "a couple years out," says Powell

Investors have been betting the Federal Reserve will cut interest rates later this year, according to the CME FedWatch tool. Fed Chair Jerome Powell just squashed those dreams.

While "it will be appropriate to cut rates at a time when inflation is coming down really significantly, we're talking about a couple years out," Powell said at a press conference on Wednesday.

Not a single policymaker forecast a rate cut this year, he said, adding that he doesn't think a cut is appropriate.

"Inflation has not really moved down. It has not reacted much to our existing rate hikes. We're going to have to keep at it," he said.

The S&P 500 and Nasdaq, which were positive before these comments, plunged into the red following the gloomy outlook. The Dow is down nearly 300 points.

3:28 p.m. ET, June 14, 2023

Powell on managing America's massive debt: "That's really not my job"

Federal Reserve Board Chairman Jerome Powell speaks during a news conference following the Federal Open Market Committee meeting, at the Federal Reserve in Washington, DC, on June 14.
Federal Reserve Board Chairman Jerome Powell speaks during a news conference following the Federal Open Market Committee meeting, at the Federal Reserve in Washington, DC, on June 14. Mandel Ngan/AFP/Getty Images

The debt ceiling standoff has ended, and Fed Chair Jerome Powell is over it.

Asked whether the Fed would recommend that Congress take on fiscal responsibility, Powell shut down any notion of him giving lawmakers financial advice.

"I don't do that. That's really not my job," Powell said in a press conference. "We hope and expect that other policymakers will respect our independence on monetary policy and we don't see ourselves as, you know, the judges of appropriate fiscal policy."

Powell did note, however, that the fiscal path America is on remains "unsustainable" and will need to be addressed over time. But he said the Fed would "under no circumstances" finance any of America's debt.

3:37 p.m. ET, June 14, 2023

Welcome to the new start-and-stop Fed

The Federal Reserve building is shown on May 2 in Washington, DC.
The Federal Reserve building is shown on May 2 in Washington, DC. Win McNamee/Getty Images

Federal Reserve Chair Jerome Powell said that Wednesday's rate pause is part of the plan to ease the central bank's foot off the brakes, as the economy is finally responding to its historic and alarming hiking campaign.

After raising rates by a historic three-quarters of a point in four consecutive meetings, the Fed raised by a half point, then a quarter point, and paused. That's because inflation is moderating as a response to that shock to the system.

But Powell suggested that the Fed will probably hike rates in July.

"It seems to us to make obvious sense to moderate our rate hikes as we got closer to our destination," Powell said in a press conference. "The decision to consider not hiking at every meeting and to hold rates steady at this meeting is a continuation of that process."

3:24 p.m. ET, June 14, 2023

Powell stresses the pause isn't a "skip"

Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve today in Washington, DC. 
Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve today in Washington, DC.  Drew Angerer/Getty Images

When you're the Fed chair, market participants and analysts are on tenterhooks as they scrutinize your every word.

So Powell was quick to correct himself when he initially called the Fed's decision to leave interest rates unchanged as skipping a rate hike.

"I shouldn't call it a 'skip,'" he said.

Powell emphasized that the pause is "a continuation" of the Fed's mission to get inflation down to 2%.

Fed officials haven't made a decision on rate hikes at their upcoming meetings, Powell told reporters on Wednesday. Still, several Fed officials are projecting higher rates this year —and in some cases, multiple rate hikes.

3:00 p.m. ET, June 14, 2023

Nasdaq turns positive as Fed Chair Powell speaks

The Nasdaq Composite turned positive as Federal Reserve Chair Jerome Powell answered questions at the central bank's post-meeting press conference.

The tech-heavy index edged up 0.05% Wednesday afternoon. The Dow fell 268 points, or 0.8%, and the S&P 500 fell 0.09%, paring back their earlier losses after the Fed paused interest rates but signaled that it's not done hiking.

3:24 p.m. ET, June 14, 2023

The Fed's latest pause still means high rates for you

From CNN's Jeanne Sahadi

Delmaine Donson/E+/Getty Images
Delmaine Donson/E+/Getty Images

After pushing interest rates up at a blistering pace — 10 straight hikes over 15 months — the Federal Reserve on Wednesday decided to hit the pause button at its latest meeting.

Where does that leave consumers? Still facing high rates in many ways that directly affect their financial lives. 

"Borrowing costs are the highest in years," said Greg McBride, chief financial analyst at Bankrate.

But in some instances, high interest rates can actually be good news for you.

Read more here.