Powell's hawkish tone keeps US indices from closing in the green

Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium on Friday was highly anticipated by investors, as it was seen as a key indicator of the central bank's thinking on interest rates and inflation.

In his speech, Powell struck a hawkish tone, emphasizing the Fed's commitment to bringing inflation down to its 2% target. He said that the central bank would continue to raise interest rates until inflation is under control, even if it means slowing economic growth.

Powell's comments sent a chill through financial markets, with US indices closing in the red on Friday. The Dow Jones Industrial Average fell 1.26%, the S&P 500 fell 1.68%, and the Nasdaq Composite fell 2.26%.

Powell's speech was seen as a sign that the Fed is willing to tolerate a recession in order to bring inflation under control. This is a significant shift from the central bank's previous stance, which was to prioritize economic growth over inflation.

The Fed's hawkish tone is likely to have a significant impact on the US economy. Higher interest rates will make it more expensive for businesses to borrow money, which could lead to slower economic growth. Higher interest rates will also make it more expensive for consumers to borrow money, which could lead to reduced spending.

The Fed's hawkish tone is also likely to have a significant impact on financial markets. Higher interest rates will make it more expensive for companies to raise money, which could lead to lower stock prices. Higher interest rates will also make it more expensive for investors to borrow money, which could lead to lower bond prices.

The Fed's hawkish tone is a significant development that is likely to have a major impact on the US economy and financial markets. Investors should be prepared for a period of volatility as the Fed continues to tighten monetary policy.