Fed Raises Rates, Yields Hit 2007 Highs as Fuel Costs Set Records: This Week On Wall Street

The Federal Reserve raised interest rates by a quarter point to 3.75%-4% for the first time since 2023, with a unanimous vote and expectations for at least one more increase this year. Inflation remains above the Fed's target at 3.4%, and officials have revised growth forecasts higher while lowering unemployment expectations. In the bond market, the 10-year Treasury yield reached 5.04%, the highest since 2007, while J.B. Hunt Transport Services warned of a 5-10% profit decline due to rising fuel costs, causing its stock to drop 13.2%. Diesel prices hit a record average of $6.30 per gallon following disruptions in Saudi Arabia.