Home News Global Markets

Stock bulls reluctantly fold on Fed’s grim economic message

Bloomberg9/22/2022 03:37 PM GMT+08  • 4 min read
Stock bulls reluctantly fold on Fed’s grim economic message
US Federal Reserve chief Jerome Powell vowed officials would crush inflation after they raised interest rates by 75 basis points for a third straight time and signalled even more aggressive hikes ahead / Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

It took longer than it should, but stock traders finally heeded the Federal Reserve’s (Fed) latest message: The inflation battle will cause real economic pain.

After rising as much as 1.3% when the Fed delivered its third straight 75-basis point hike, the S&P 500 plunged as close as Fed chief Jerome Powell made it crystal clear that the central bank will keep raising rates sharply — until officials see signs that price pressures are easing. That is a process that will not be “painless” for the labour and housing markets, Powell warned.

The rate hike came with projections that the world’s most important monetary authority has another 1.25 percentage points of tightening for investors this year — a far more aggressive pace than investors expected.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.