US Federal Reserve Chair Jerome Powell delivered a stark warning about the Fed’s determination to fight inflation with more sharp interest rate hikes. 9News
The message landed with a thud on Wall Street, sending the Dow Jones Industrial Average down more than 1000 points for the day.
The Dow Jones average finished down 3 per cent on Friday, its worst day in three months. The tech-heavy Nasdaq composite shed nearly 4 per cent. Shorter-term Treasury yields climbed as traders built up bets for the Fed to stay aggressive with rates. After raising its key short-term rate by a steep three-quarters of a point at each of its past two meetings - part of the Fed's fastest series of hikes since the early 1980s -Powell said the Fed might ease up on that pace “at some point,” suggesting that any such slowing isn't near.
Federal Reserve Chair Jerome Powell smiles and walks after his speech at the central bank's annual symposium at Jackson Lake Lodge in Grand Teton National Park Friday, Aug. 26, 2022. in Moran, Wyo. Many analysts speculate that Fed officials want to see roughly six months or so of lower monthly inflation readings, similar to July's, before stopping their rate hikes.
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