Investors are trying to come to terms with Fed Chair Jerome Powell’s recent comments, signaling more policy tightening.
The Dow plunged 512 points, or 1.5%, to 32,689, the S&P 500 dropped 1.7% and the Nasdaq was down 1.5%., signaling more policy tightening, and the central bank’s projection that interest rates would breach the 5% mark in 2023, a level not seen since 2007.raises rates more than it expects next year
. The policymaker added that he does not anticipate a recession from the Fed’s aggressive tightening. “It’s a concern that the economy is going to continue to slow and that’s really the driving force behind this because the Fed is continuing to raise interest rates,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Conn.
Fears of a looming recession sparked by the Federal Reserve’s relentless battle against inflation hammered sentiment.Investors are trying to come to terms with Fed Chair Jerome Powell’s recent comments, signaling more policy tightening.Money market bets show at least two 25 bps rate hikes next year and a terminal rate of about 4.9% by midyear, before falling to around 4.4% by the end of 2023.
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