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Powell’s First Day Brings Stock Rout

  • ‘Our financial system is now far stronger,’ he says Monday
  • S&P 500 dives 4.1 percent as Fed leadership changes hands
Bloomberg business news
Tim Duy, University of Oregon professor, discusses the outlook for Federal Reserve policy under Jerome Powell.(Source: Bloomberg)
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Federal Reserve Chairman Jerome Powell was met with a surging bout of market volatility in his first day in office, as stocks fell and long-term interest rates plunged in response.

The 4.1 percent rout in the S&P 500 index on Monday, the steepest decline since 2011, poses more questions than answers so far for Powell and his team. The sell-off continued into Tuesday in Asia, with stocks plunging for a second day and U.S. stock futures continuing to decline.