Alex Ossola

The Fed holds rates steady, but officials' hawkish tone sends stocks sliding.

Plus, Tim Cook tells the Journal that price increases on Apple products are, quote, unavoidable.

And U.S.

officials spell out the terms of the Iran peace deal.

It's Wednesday, June 17th.

I'm Alex Oseleff for The Wall Street Journal.

This is the PM edition of What's News, the top headlines and business stories that move the world today.

The Federal Reserve today held its benchmark rate steady, between 3.5 and 3.75 percent, as was widely expected.

Officials were unanimous in that decision, but they hinted more strongly that their next move will be a rate hike.

It was the first meeting led by new Fed Chairman Kevin Warsh, and the central bank under him might look different.

We'll get into those changes with WSJ economics reporter Matt Grossman, who joins us now.

But first, Matt, the policy.

The big news from today's meeting is that Fed officials seem to be leaning more towards a rate hike because of the worsening outlook on inflation.

Would that be a big shift for Warsh, who Trump put in the role to cut rates?

What does that mean for investors?

I mean, can we expect more market volatility as investors are flying a little bit more blind?

That was WSJ economics reporter Matt Grossman.

Thank you, Matt.

Markets had a strong reaction to today's Fed decision.

Treasury yields rose and stock indexes fell.