• The Fed held rates steady in a divided 9-3 vote, and markets tanked because they wanted proof the Fed would actually fight inflation.
• Stocks fell into a correction, Meta dropped 10% on weak guidance, and both Meta and Google are burning cash on AI spending.
• Long-term government bond yields hit their highest since 2007, a sign investors fear more inflation and doubt the Fed's resolve.
• Business bankruptcies are at a 15-year high, with even bigger unknown risks hiding in private credit.
• New Fed chair Warsh talked tough on inflation but refused to raise rates, which markets read as a bluff — worsened by U.S. debt worries and fresh war talk over Iran.

Outlook: If inflation data doesn't cool on its own soon, this standoff between a distrusted Fed and a panicking market likely ends badly.