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Dow drops 400 points after Powell reiterates Fed will continue to raise rates to fight inflation
CNBC ^ | August 26, 2022 | Sarah Min & Tanaya Macheel

Posted on 08/26/2022 8:05:26 AM PDT by John W

Stocks fell sharply Friday after Federal Reserve Chair Jerome Powell said he will continue to raise rates to fight inflation in his Jackson Hole speech.

The Dow Jones Industrial Average dropped 407 points, or 1.22%. The S&P 500 fell 1.5% and the Nasdaq Composite slid 1.84%.

Those moves come after a hawkish speech out of the Fed chair as Wall Street sought information on the pace of future interest rate hikes.

"Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy," Powell said.

"It was fine. It was hawkish enough, but it wasn't over the top," said Wells Fargo's Michael Schumacher. "There was expectations for a very hawkish speech so it's hard to measure up to that."

(Excerpt) Read more at stocks.apple.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: fedchairman; jacksonhole; stockmarket
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To: John W

Well, in my view the market reaction is good for America.

The averages have crept up. The rise could be Democrat election fodder

Better at election time that the averages still be depressed. There must continue to be a generally bad feeling


21 posted on 08/26/2022 8:42:25 AM PDT by bert ( (KWE. NP. N.C. +12) Juneteenth is inequality day)
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To: Revel

Anyone seen interest rates for savings account raise yet?

I have 3 accounts that have gone from .5% to 1.7-1.8% so yes, bank rates have risen a lot and will rise more. Just remember that bank rates never rise to the rate of inflation, they follow it up while staying below it. Bank accounts aren’t investments, they are parking places while you look for investments. I moved almost half my cash into Treasury bonds 3 months ago and I’m laddering them. Higher return than the banks and no taxes.


22 posted on 08/26/2022 8:45:40 AM PDT by SaxxonWoods (The only way to secure your own future is to create it yourself.)
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To: bert

This market is going nowhere in the next few months, except sideways or down.


23 posted on 08/26/2022 8:47:50 AM PDT by 1Old Pro
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To: woodbutcher1963

The Fed giveth. The Fed taketh away. May the name of the Fed be shamed.


24 posted on 08/26/2022 8:51:19 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: John W
Jerome Powell PLEASE CALL "Biden the Fool" and tell him it's cheaper to buy democrats votes by PAYING DEMOCRATS A HUNDRED DOLLARS EACH WHEN THEY SHOW UP TO VOTE. Paying off deadbeat students $10,000 each will drive up inflation.

25 posted on 08/26/2022 8:54:51 AM PDT by GOPJ (Merrick's proud the DOJ & FBI are being renamed "Lavrentiy Beria Society' in honor of Joseph Stalin.)
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To: Raycpa

That’s part of it. The people so happy about student debt relief are foolishly unaware it will have ramifications that eat them up.


26 posted on 08/26/2022 8:55:26 AM PDT by Paul R. (You know your pullets are dumb if they don't recognize a half Whopper as food!)
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To: aquila48

Hey, look on the bright side.
At least we will not be freezing in the dark this winter like the Europeans.

(S)


27 posted on 08/26/2022 8:59:05 AM PDT by woodbutcher1963
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To: GOPJ

Actually, a good idea. Better than what he is trying to do.


28 posted on 08/26/2022 9:04:57 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: John W

When is the next FED interest hike scheduled for?


29 posted on 08/26/2022 9:11:43 AM PDT by minnesota_bound (Need more money to buy everything now)
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To: John W

The Fed CAN NOT fix Biden’s Marxist Economic Policy!!!!!


30 posted on 08/26/2022 9:15:55 AM PDT by G Larry (May God continue to Bless Jim Robinson!)
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To: John W
Now at −647.18

.

31 posted on 08/26/2022 9:18:34 AM PDT by R_Kangel ("A nation of sheep will beget a nation ruled by wolves")
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To: Revel
Anyone seen interest rates for savings account raise yet?

CDs seem to rise about 1/2 a point for every 3/4 point FED increase. Some banks are offering 1-2 year CDs in the 2.4%-2.6% range.

https://www.bankrate.com is a good source to check for rates.

Regular savings and money market accounts seem to be stifled.


32 posted on 08/26/2022 9:24:58 AM PDT by TomGuy
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To: allendale

“Are the American people really that vapid and stupid?”

Of course they are…it’s very difficult to achieve a fascist society out of a rich country like America was till the end of the last century. The people have to be stupid enough to become willing peasants and freely give up their own prosperity.


33 posted on 08/26/2022 9:25:29 AM PDT by Scott from the Left Coast (Make Orwell Fiction Again)
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To: aquila48
Resulting in a big jump in unemployment and possibly deep recession.

It has already started. Ford announced cutting 3,000 white-collar jobs. Best Buy is cutting jobs across the US. Walmart is eliminating 200 corporate jobs.

A related FR thread:
The Layoff Tsunami Has Begun: 50% Of U.S. Companies Plan To Eliminate ... jobs within the next 12 months.

34 posted on 08/26/2022 9:38:06 AM PDT by TomGuy
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To: John W

But, but, but... this can’t be true. The Biden people said that their gazillion-dollar student loan bailout is DEflationary.


35 posted on 08/26/2022 9:39:17 AM PDT by irishjuggler
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To: John W

Day traders must be doing OK. Just buy on Mondays and sell on Wednesdays.


36 posted on 08/26/2022 9:45:54 AM PDT by aimhigh (THIS is His commandment . . . . 1 John 3:23)
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To: John W

More Biden finger prints


37 posted on 08/26/2022 9:50:20 AM PDT by Vaduz ( )
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To: John W

The difficult to avoid hourly 3 minutes news on Fox Radio reported Thursday that stocks went up 300 points or something. The woman reading the news was excited, breathless and gushing with happiness as if she had read “miners rescued and all are alive.”

I want the economy to crash BEFORE the election.

Not “love those lower gas prices? And inflation going down? Millions now agree and they love President Biden as he soars to record popularity just before midterms tomorrow.”


38 posted on 08/26/2022 10:54:12 AM PDT by frank ballenger (You have summoned up a thundercloud. You're gonna hear from me. Anthem by Leonard Cohen)
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To: John W; All

Conversely, Bond Ladders are coming back in style after long after the Bernake Twist almost made the irrelevant.


39 posted on 08/26/2022 11:15:03 AM PDT by taildragger ("Do you hear the people Singing? Singing the Songs of Angry Men!")
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To: R_Kangel

DOW now -756.


40 posted on 08/26/2022 11:21:05 AM PDT by NautiNurse (Ron DeSantis is Top Gov)
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