S&P 500 Suffers Worst ‘Fed Day’ Since January 2021: Markets Wrap
- Powell says it’s premature to think about pausing rate hikes
- The Fed chief also notes we still have ‘some ways to go’
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Stocks sold off as Jerome Powell continued to sound unequivocally hawkish as the Federal Reserve pushed ahead with its most-aggressive tightening campaign since the 1980s to thwart inflation.
The S&P 500 suffered its worst rout on a Fed decision day since January 2021. Stocks came decidedly lower after Powell said the Fed still has “some ways to go” in its policy cycle, adding that it’s premature to think about a pause as rates could peak at higher levels than previously thought. The move wiped out an earlier rally driven by his remarks that a slower pace of hikes could come as soon as December.