Will the wild stock market cause the Federal Reserve to slow interest rate hikes? And should it?
WASHINGTON - Financial markets delivered an unwelcome gift for Jerome H. Powell when he was sworn in last week as chairman of the Federal Reserve - a nosedive.
Triggered by fears of rising inflation and interest rates, the Dow Jones industrial average's record 1,175-point plunge on Feb. 5 kicked off the worst week for stocks in two years. The steep market declines and nerve-rattling volatility put Powell and his colleagues in a bind.
The easiest way to calm investors would be for Fed policymakers to signal that they will slow their gradual interest rate hikes, including delaying the next small one expected in March. But that move could backfire, ultimately allowing the economy to overheat and
