Wall Street holds steady after the Fed hikes interest rates as oil prices ease

U.S. stocks were steady Wednesday after the Federal Reserve signaled it is trying to rein in high inflation by raising interest rates for the first time in three years. A drop in oil prices and easing pressure in bond markets helped keep Wall Street firm. Investors generally favor lower rates because higher borrowing costs tend to slow economic growth and weigh on stock and other asset prices. Still, the market’s outlook reflects the expectation that the near-term downside could be outweighed by longer-term gains if inflation returns toward the Fed’s 2% target. The overall tone suggested caution, but no broad selloff followed the decision.