During his annual policy speech in Jackson Hole last month, Fed Chairman Jerome Powell indicated that the Fed would continue to tighten policy to bring inflation down to its target level. He predicted that the economy would experience "some pain." Since the Jackson Hole conference, the market has witnessed a massive sell-off on investors’ concerns over a potential recession.
As an improved jobs report increases the odds of the Fed maintaining its hawkish stance, the market downturn is expected to continue.
