Why stocks and bonds slumped — and market volatility soared — after Fed meeting

Stocks and bonds sold off after the Federal Reserve ended its policy meeting Wednesday with a new set of economic projections that pointed to a potentially slower pace of interest-rate cuts next year than previously forecast.

Markets were rocked by a jump in Treasury yields following the Fed meeting, with interest rates in the bond market climbing after the economic projections also showed central-bank officials anticipate that inflation may remain sticky in 2025. The Cboe Volatility Index

VIX, the stock market’s so-called fear gauge, skyrocketed 74% Wednesday to 27.6, according to FactSet data.