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10:22 a.m. ET, August 26, 2022
Stocks bounce around, trying to find ideas from Powell’s speech
Jerome Powell throughout his opening remarks at the Jackson Hole Economic Symposium today.
(Kansas City Fed)
Investors expecting dovish remarks from Federal Reserve Chairman Jerome Powell Friday were dissatisfied. Instead, Powell pointed out “discomfort” two times when forecasting the future of the United States economy.
“While greater rates of interest, slower development, and softer labor market conditions will reduce inflation, they will likewise bring some discomfort to families and businesses,” Powell said. “These are the regrettable expenses of minimizing inflation. But a failure to bring back rate stability would imply far higher discomfort.”
Powell hinted the Fed will continue its historical rate of rate walkings for the foreseeable future up until it can return inflation to typical levels.
“We are taking powerful and fast actions to moderate need so that it enters much better positioning with supply, and to keep inflation expectations anchored,” he said. “We will keep at it up until we are positive the task is done.”
Stocks danced around, dipping, then increasing, then falling once again as Wall Street absorbed Powell’s remarks.
The Dow was last down 80 points, or 0.2%.
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