Jerome Powell Leaves Investors Guessing about Future Rate Hikes

Stocks plummeted today after Jerome Powell, Chairman of the Federal Reserve, failed to give investors the assurances they were hoping for about future interest rate hikes.

The Fed raised its target fed funds rate Wednesday November 2, 2022 by 75 basis points, or three-quarters of a point, and said it would take into account the lagging impact of higher rates on the economy.

Mr. Powell instead indicated that the Fed is closely monitoring the economy and will be sensitive to any changes in the outlook. This sent a clear message to investors that rates are likely to stay on hold in the near future, which was not what they wanted to hear.

Consumer inflation is running at an 8.2% annual pace as of September 2022.

The stock market has been volatile in recent weeks on concerns about the economy and trade tensions, and today's comments from Mr. Powell only added to those concerns.

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