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The Federal Reserve has announced a small rate hike of a quarter percentage point, which caused all three major indices to close in the red on Wednesday.

The Dow fell 530 points, while the NASDAQ dropped 190 and the S&P fell 65.

The Fed’s decision to raise rates comes amid recent turmoil in financial markets, and while the bank signaled a year of aggressive rate hikes, it also suggested that further increases in borrowing costs may be paused in the near future.

The Fed has been raising interest rates to tackle inflation, but recent collapses of banks such as SVB and Signature Bank have raised concerns about the stability of the banking system.

However, Fed Chairman Jay Powell reassured reporters that the banking system is sound and that people’s deposits are safe.

The Treasury Secretary, Janet Yellen, also affirmed the safety of deposits, saying that she has not considered or discussed the possibility of insuring all deposits, regardless of the amount.

The impact of the rate hikes has been felt the most in the housing market and for business spending, according to Powell.

Meanwhile, American debt continues to rise, with debt currently at 17 trillion dollars collectively across the country, and interest rates for mortgages, auto loans, and credit cards have all spiked as well.

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