Stocks were decimated Wednesday with the three major indexes ending broadly lower after the U.S. Federal Reserve indicated it won’t cut rates as aggressively next year as markets had expected.

The Fed cut rates today by 25 basis points at its regular meeting, following a 25 basis-point cut in November and a 50-point cut in September — a trajectory that had many hoping the highest cost of money in more than two decades was decisively on the way down. Now, Fed officials anticipate two cuts in 2025 instead of the four that were expected in September.

The interest rate futures market — where traders bet on future rates — is looking for even less relief from one cut to none.

The main reason is that core inflation still needs some attention. Rates rose dramatically over two years to tamp down rampant inflation. Prices have settled quite a bit but are still not yet at the Fed’s 2% target and have recently come in higher than expected.

The U.S. economy and labor market have also appeared stronger that the Fed expected, another reason not to rush to take rates lower. And there’s also concern that policies of the incoming Donald Trump administration, mainly tariffs, could put upward pressure on prices and that may be leading the Fed to move more slowly on rate cuts.

“From here it’s a new phase and we are going to be cautious about further cuts,” Fed chief Jerome Powell said at a press conference this afternoon at the end of the meeting where his comments caused a market meltdown.

The Dow Jones Industrial Average closed down 2.6%, or 1,123 points, its 10th straight losing session that reps its longest down streak since 1974.

The S&P 500 lost about 3% and the Nasdaq plunged 3.56%.

Media shares followed markets lower with Warner Bros. Discovery down the most, by a hefty 6.3% after a run-up in past weeks. Roku fell 5.8%; Netflix was down by 3.2%; Comcast by 2.24% and Disney by 1.4%.

The tech sector fell along those lines with Amazon down 4.6%; Meta and Alphabet off 3.5% and Apple off 2.14%.

The dollar hit its highest point in two years against a basket of currencies.

“The slower pace of cuts for next year really reflects both the higher inflation readings we had this year and the expectation inflation will be higher,” Powell said.

High rates aren’t great for companies with already high high debt, and crimps borrowing by companies and consumers.