Investors wondering why stocks are down today can look to recent words from Federal Reserve Chair Jerome Powell.
In his first statement of the year, Powell spoke about plans for the central bank in 2023, including the Fed’s ongoing battle with inflation. Powell noted that inflation remains too high and that the central bank intends to keep battling it with interest rates.
Here’s a portion of what Powell had to say on the matter, as collected by CNN Business:
“Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.”
How the Stock Market Is Reacting Today
Many stocks and indices are falling on Tuesday in reaction to Powell’s comments. That makes sense, as the market braces for even more rate hikes in the coming months. While inflation is down over the past few months, it’s still not as low as Powell and the Fed want.
Investors will want to keep an eye on the stock market when the end of the month rolls around. That’s when the next Fed meeting is set to take place. It’s likely we’ll see a rate hike again at that time, although how large of a hike is still open for debate.
Investors looking for all of the latest stock market news for Tuesday are in luck!
InvestorPlace is home to all of the hottest stock market news for today. We’ve got everything happening with shares of Bed Bath & Beyond (NASDAQ:BBBY) stock, Sidus Space (NASDAQ:SIDU) stock and more. You can find all of that at the following links!
More Tuesday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
