Stocks sink as Fed Chair Jerome Powell promises 'forceful and rapid' action on inflation

Dow plunges more than 1,000 points following Fed comments

US stocks plummeted on Friday following a warning from Federal Reserve Chair Jerome Powell that the central bank will not end its fight against rapid inflation anytime soon.  

Powell’s comments weighed on investors, who grappled with what more aggressive interest rate hikes might mean for the health of the economy. 

The Dow closed down 1008 points, or 3%.

The S&P 500 fell by 3.4%.

The Nasdaq Composite closed 3.9% lower. 

For the week, the Dow fell by 4.2%. The S&P 500 and Nasdaq Composite were down 4% and 4.4%, respectively. 

As stocks settle after the trading day, levels might still change slightly.

Dow now down nearly 900 points

There was nowhere to run to and nowhere to hide on Wall Street Friday. The Dow plunged nearly 900 points in late afternoon trading. All 30 stocks were in the red. The S&P 500 and Nasdaq sank, too, plummeting 3% and 3.5% respectively.

The reason for the sell-off? Federal Reserve chair Jerome Powell didn't sound all that dovish about future interest rate hikes during his speech in Jackson Hole Friday. The odds of another big rate hike (three-quarters of a point versus a half-point) at the Fed's next meeting on September 21 shot up following his comments.

Powell even mentioned that there could be some "pain" for consumers and businesses as the Fed uses higher rates to fight inflation.

Dow sinks 600 points

The stock market continued to sink sharply after Federal Reserve Chairman Jerome Powell on Friday spooked investors by signaling policymakers would fight inflation with more historic rate hikes. He warned the US economy could feel some "pain" as the Fed works to slow the pace of surging prices.

The Dow fell 600 points, or 1.8%.

The S&P 500 fell 2.2%.

The Nasdaq fell 2.7%

Dow sinks 500 points

The Dow tumbled after Federal Reserve Chairman Jerome Powell declared Friday an all-out fight against inflation -- even hinting that the Fed might not let up if it sends the US economy into a recession.

The Dow fell 500 points, or 1.5%.

The S&P 500 fell 1.8%.

The Nasdaq fell 2.3%.

Fed chairman Jerome Powell says Fed's fight to tame inflation is 'unconditional'

At the Federal Reserve's annual Jackson Hole Economic Symposium, chairman Jerome Powell telegraphed a greater sense of urgency about taming inflation than he has in previous remarks, calling price stability "the bedrock of our economy."

In his keynote speech Friday morning, Powell said that the central bank's "overarching focus" was on controlling rampant inflation.

"Our responsibility to deliver price stability is unconditional," he said.

While Powell did not offer any indication whether the Fed's extraordinary back-to-back rate hikes of 75 basis points each would be repeated at its rate-setting meeting next month, he sent the clearest message yet that the central bank was unequivocally committed to more restrictive policy in order to rein in inflation.

Powell added that the path to reducing inflation would not be quick or easy, saying that the task, "requires using our tools forcefully to bring demand and supply into better balance."