![]() ![]() Powell didn’t really break new ground, which is good since Jackson Hole isn’t a policy meeting.” “It was a mercifully short speech and to the point. “He basically said there will be pain and that they won’t stop and can’t stop hiking until inflation moves a lot lower,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. He was speaking at an annual economic symposium in Jackson Hole, Wyoming, which has been the setting for market-moving Fed speeches in the past. But he also said the pain would be far greater if inflation were allowed to fester and that “we must keep at it until the job is done.” households and businesses, in perhaps an unspoken nod to the potential for a recession. Powell acknowledged the increases will hurt U.S. The increases help corral inflation, but they also hurt the economy and investment prices. Powell’s speech followed up on several other Fed officials, who have recently pushed back on speculation the Fed may ease up on its interest-rate hikes. “That left the market with less to grab onto in terms of the future path for policy.” “He focused more on the Fed’s goals rather than the path,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab. Stocks fell at first, then erased nearly all their losses, and then turned decisively lower with all but five of the companies in the S&P 500 ending up in the red. Investors initially struggled to make out the meaning of Powell’s highly anticipated speech. Higher rates help corral inflation, but they also hurt asset prices. The Dow dropped 3 percent and the Nasdaq composite ended 3.9 percent lower, reflecting a broad sell-off led by technology stocks. WATCH: Federal Reserve Chair Powell warns interest rates could increase ‘for some time’ The S&P 500 lost 3.4 percent, its biggest drop since mid-June, after Jerome Powell said the Fed will likely need to keep interest rates high enough to slow the economy “for some time” in order to beat back the high inflation sweeping the country. NEW YORK (AP) - The Dow Jones Industrial Average sank more than 1,000 points Friday after the head of the Federal Reserve dashed Wall Street’s hopes that it may soon ease up on high interest rates in its effort to tame inflation. ![]()
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