Stocks Slump 3% As Worries Grow over Higher Interest Rates
SnopesMAR 23 2022
Turbulence is expected in the market, and the recent volatility isn't surprising; nor does it suggest that the Fed is wrong to tighten. Markets are simply trying to make sense of a policy environment that it hasn't seen in decades.
While markets are no stranger to volatility, the whiplash over the last two days is unparalleled. Once an anchor of stability for the market, the central bank is now its chief antagonist. Although the Fed Chair expressed confidence, the risk of a recession is a threat that investors can't ignore.