A pedestrian looks at Japanese companies’ share prices of the Tokyo Stock Exchange displayed on an electronic board in Tokyo on April 30, 2021.
Yuki Iwamura | AFP | Getty Images
On Friday in the U.S., the Dow Jones Industrial Average plunged 1,008 points, or 3.03% to 32,283.40. The S&P 500 fell 3.37% to 4,057.66 and the Nasdaq Composite dropped 3.94% to 12,141.71.
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”
He said the Fed’s decision in September “will depend on the totality of the incoming data and the evolving outlook.”
Read More: Japan, South Korea, Australia stocks down 2% after Powell’s speech