Private owners of assets face a “crisis of value”, after years of prices being driven higher by rock-bottom interest rates.
“We’re not trying to induce a recession now, let’s be clear about that,” Powell told reporters. Fed’s goal is to depress the rapid pace of inflation.
Corporate America was furiously buying, while hedge funds were busy bailing from stocks at a record pace as S&P 500 plunged into a bear market.
The S&P 500 now implies an 85% chance of a US recession amid fears of a policy error by the Federal Reserve.