Stocks Tumble as Fed Signals Higher Rates for Longer

Federal Reserve signalling that interest rates will stay higher for longer than expected, making rate cuts this year unlikely
Stock markets have dropped in response, erasing some recent gains that were based on hopes for rate cuts
Prolonged high interest rates could slow the economy by making borrowing more expensive for consumers and businesses
Higher mortgage rates resulting from Fed policy could negatively impact the housing market
Some economists think the economy is strong enough to avoid recession even without rate cuts this year