Powell Adopts an Irresponsible Monetary Policy

It appears that Jerome Powell’s speech in Jackson Hole finally convinced investors that they could not fight the Fed.

The major indexes fell for the fourth consecutive day on Wednesday. The Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 each closed out August lower than they started the month, as the selloff erased the gains from earlier this month.

Apart from Friday’s big decline, mostly the market has moved down in an orderly manner. But the downward momentum has been relentless, and so the losses have mounted. The Dow is down about 2640 points—or 7.7 percent—since its mid-August highs. The S&P 500 is down by 8.1 percent. The Nasdaq has lost just under 10 percent since August 15.

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