US Markets React as Federal Reserve Maintains Interest Rates

US stock markets and the dollar declined after the Federal Reserve kept its federal funds rate unchanged at 3-1/2 to 3-3/4 percent, despite some dissent for a hike. This decision led to a significant steepening of the yield curve, pushing 30-year Treasury yields to near 19-year highs, as market participants questioned the Fed's commitment to inflation control. Concurrently, oil prices surged by approximately 8% due to renewed Middle East airstrikes, intensifying global energy supply concerns and contributing to inflation expectations.