Dow Plunges 1,100 Points as Fed Splits Over Rate Decision

NEW YORK – Stocks suffered their worst day in months on Wednesday, with the Dow Jones Industrial Average dropping 1,100 points as investors reacted to a divided Federal Reserve. The central bank held its key interest rate steady, as expected. However, three Fed officials voted against the decision, signaling deep internal disagreement about the future of monetary policy. This rare dissent rattled markets. Many traders had hoped for clear signals of a rate cut later this year. Instead, the split vote raised fears that the Fed may keep borrowing costs high for longer than anticipated. The broader S&P 500 and the tech-heavy Nasdaq also fell sharply. Analysts described the sell-off as a "panic reaction" to uncertainty about the central bank’s next move. The Fed has been battling inflation for over two years. While price pressures have eased, Wednesday’s vote shows that policymakers remain divided on whether the economy needs tighter or looser credit conditions. Investors now await the Fed’s next scheduled meeting in September for further clues.