Jobs could be lost as a result of the Fed's inflation fight

Investing Finances

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The Dow Jones average ended Friday down 3%, its worst day in three months.

Some on Wall Street expect the economy to slip into recession late this year or early next year, after which they expect the Fed to change its behavior and reduce rates.

After lifting the short-term rate by as much as three-quarters of a point in each of the previous two meetings...

1. on the Fed's fastest run of rate hikes since the early 1980s 2. Powell said the Fed may reduce that pace "at some point," suggesting no such slowdown is imminent.

Powell said the size of the Fed's rate hike at its next meeting in late September — either half or three-quarters of a percentage point — would depend on inflation and job data.

He added that, while July's low inflation readings were "welcome," "one month of progress is not enough for to be confident that inflation will be lower 

On Friday, the Fed's closely watched inflation gauge showed prices actually fell 0.1% from June to July.

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