Record high inflation, monetary policy tightening to control it, and the consequent fears of an economic slowdown have led to a pullback in the markets, with major indices plummeting lately. Moreover, Jerome Powell’s speech at Jackson Hole indicates the Fed’s determination to keep raising rates and near-term pain for the markets.
Some investors might view this as an opportunity to load up on stocks, which have gotten even cheaper. However, the Fed’s unrelenting hawkishness spells trouble for firms that need funds to sustain and grow themselves before they can find their own feet.
