Stock Rout Leaves Traders Wondering How Worried to Be About Fed’s Hawkish Turn
- Less-accommodative Fed creates headwinds for market: Maley
- Mallouk is ‘looking for what’s going to change the narrative’
Jerome Powell
Photographer: Al Drago/BloombergThis article is for subscribers only.
A small shift in language from Jerome Powell had major consequences for markets last week and has investors wondering how concerned they should be about the future.
Indexes bounced around like popcorn, meme stocks spiraled lower and volatility gauges surged in an anxious week for stocks, after the Federal Reserve chairman said officials should weigh removing pandemic support faster and that inflation was no longer “transitory.” Throw in rising angst about the coronavirus and it was one of the roughest stretches since the pandemic’s outbreak.