“There is no market put, and I think we’re all waking up to that fact now,”
The so-called Federal Reserve put option, which is shorthand for the belief the U.S. central bank will rush in to rescue tanking markets — an approach that has been denied by previous Fed chairs.
“Restoring price stability is an unconditional need. It is something we have to do,” Powell said in an interview Tuesday during the Wall Street Journal’s Future of Everything festival. “There could be some pain involved,” Powell added.
The Nasdaq Composite could plunge 75% from peak, S&P 500 skid 45% from its top, warns Guggenheim’s Scott Minerd.
MarketWatch 19 May 2022
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