Why Powell's inflation comments sparked stock market sell-off

It was another volatile day on Wall Street after comments from Federal Reserve Chair Jerome Powell, who spoke at the Economic Club of Chicago. Kelly O'Grady explains.

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[V.stones]

But the most important thing right now is to try and stay calm and avoid making rash decisions based on emotion

[danxy]

Trump’s tariff strategy: raise prices, lose allies, blame China

[ARCHEIAI_T]

Because he spoke reality doesn’t mean it’s his fault to sell off. It was a warning and people took it as such.

[MengerMania]

Thanks Mate, the sad truth is that no one has a clue, we all react to what happens as it happens and try to analyse it but can’t predict an iota of what is going to unfold in the markets… content creators are like amplifiers, when times are good they affirm it and try to tell you why it’s good and that it’s looking bullish but then all of a sudden the market turns bearish and everyone affirms it again and try to analyse why… it’s so sad that many are so powerless and it's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 2.3Bitcoin to a decent 19Bitcoin in the space of a few months... I'm especially grateful to Milton Harper, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[mmmqua]

I'm so glad and thankful for CA at least trying to stand up against this tariff nonsense!!! It would be absolutely devastating to the CA economy, and it's people!!!

[albertoserrano]

He just spoke the truth, people reacted accordingly

[Daniel-bss]

More than a collapse in the stock or real estate markets, inflation has a direct impact on people's standard of living. It’s no surprise that current market sentiment is so negative. To navigate this economy, expert guidance is more crucial than ever. ETFs, stock markets, and the housing sector are all volatile. My $350k portfolio has taken a serious hit.

[MskcMySLcDxpmemFQoesLHvCnE]

Anyone who voted for Trump or stayed home should keep their shame to themselves. What a disgrace.

[ScottFreeze-vz]

Careful, Mr. Powell. He'll send you to an El Salvadorean prison. 🤣

[whiskeygamesnerdstuff]

With Tariffs there are multiple conversations. The two primary conversations are. 1. Are they good/bad, Fair/unfair, is it an even playing field, and the various reasons for having them. 2. What is a good way to go about them?

Most people would agree that the first conversation is a complex issue, that can be debated at various levels. The second conversation is more of, Is the chaos of the last week or two the best way to go about it? Many Americans support a change, but those same people do not support how it is happening now.

I’m sure the thousands of American small businesses that are scrambling to cover this extra cost, are asking why couldn’t this had been planned better? Why couldn’t the increased worldwide Tariffs be announced to go into effect in 3 or 6 months to allow them to order products before the deadline and give them time to start to plan for it?

[lincolndachane]

The brilliance of this administration to take a smooth running, advancing economy and put it into the garbage disposal is just amazing. Never seen anything like this before (thank you). Donkeyvonshitzinpants has really out done himself.

[lamdao]

People are front running their purchases ahead of the tariffs.

[transf]

Whenever he talks, market always sell off. Sucks.

[Timberking-cdrp]

What worries me more is the fact that investors need statements from the Federal Reserve Chair in order to feel fear and stop investing. Let’s assume that if he hadn’t said those things, you would have just continued investing and hoped that things would turn out fine?

The Fed Chair didn’t reinvent the wheel—he said things that anyone who has studied or read about economics, even as an amateur, should understand. It’s simple and basic logic.

I’m starting to feel that most investors don’t really understand why and how they’re investing—they behave like gamblers in a casino. And that leads me to the conclusion that most of the skyrocketing valuations in tech are just one big bubble. It’s only a matter of time before it bursts.

Because if investors don’t grasp how basic macroeconomics works, how can they evaluate or predict the trajectory of a tech company—something they know nothing about? The higher the expectations, the harder the fall.

[goletra]

Normally the Fed hikes rates to stem inflation by cooling off economic activity. Higher rates mean borrowing costs go up, money velocity goes down. With tariffs you have high prices but that's not the result of high economic activity, so that's not really inflation. If you hike rates it will destroy demand further and a recession is all but guaranteed. The Fed should instead signal that interest rate will not change - that will anchor some stability.

[tonytoloczko]

There goes everyone's pensions. Oh well. Easy come easy go!!!❤😂

[tonytoloczko]

Big layoffs coming. GM Laid off 14000 people 😂

[maricel]

USA he distry the world market because of tariff but ?? Federal not allowed that USA not good. You distry the table not your business I need help frm the businesses

[yanktackle]

Look, the guy that cries when Trump is president 😂😅

[tonytoloczko]

Wish Trump could be in for 2 more terms😅