A full recap of the Fed rate decision and the Powell remarks that knocked the stock market

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Stocks hit fresh session lows, rates rise amid Powell remarks

The major averages hit fresh session lows at around 3:20 p.m. ET, as traders assessed Fed Chairman Jerome Powell’s comments on monetary policy and the potential for even more inflation going forward.

The Dow was down about 350 points, or 1%. The S&P 500 and Nasdaq Composite dipped 0.9% and 0.7%, respectively.

Meanwhile, rates rose as Powell spoke. The benchmark 10-year yield traded around 1.83%, and the 2-year rate traded at 1.1%.

Powell says there is upside risk to inflation

Jerome Powell said that there’s a risk that inflation will not decline back toward its pre-pandemic levels any time soon, and that the rise in prices could accelerate.

“Inflation risks are still to the upside in the views of most FOMC participants, and certainly in my view as well. There’s a risk that the high inflation we are seeing will be prolonged. There’s a risk that it will move even higher. So, we don’t think that’s the base case, but, you asked what the risks are, and we have to be in a position with our monetary policy to address all of the plausible outcomes,” Powell said.

Powell also mentioned that supply chain issues were taking longer to be resolved than the Fed had originally anticipated.

—Jesse Pound

Stocks give up sharp gains, Dow down more than 200 points

Stocks gave up their sharp gains from earlier in the day, as traders weighed Fed Chairman Jerome Powell’s comments.

The Dow traded more than 200 points lower, or 0.6%. The S&P 500, which had risen as much as 2.2%, slid 0.6%. The Nasdaq Composite was down 0.6%, erasing a 3.4% gain.

—Fred Imbert

 

Sumber : www.cnbc.com