reducing inflation is likely to require a sustained period of below trend growth. there will likely be softening of labor market conditions. while higher interest rates, slower growth and softer stlaib market conditions will bring down inflation, they will also bring pain to households and businesses. i think the pain he means is higher costs of everything. the thing people are wrestling with, with high inflation and wages coming down. do i feed my flame this month? and rent has gone up like crazy during this inflationary period. if you have the cash, it s pushing people into buying. you were upset larry kudlow took some of your thunder. i put it in my notes. larry is calling for a crash in
with chinese drones flying over chinese territory. will ripley, thank you so much. looking at markets around the world. a tough session in asia and europe has opened lower sharply lower for paris and frankfurt. wall street, index futures looking to start the day soft here. the dow was crushed on friday plunging more than 1,000 points after fed chairman jerome powell warned the flight against inflation is far from over. investors did not want to hear that. they re grappling with more interest rate hikes. and dow, s&p 500, nasdaq all lost more than 5% last week. talk like this sending stock investors running. while higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.
maintain healthy blood pressure with a custom blend of ingredients. i m taking charge, with garlique. this morning investors will be watching to see if the market rebounds after friday s interest rate warning from fed chair jerome powell sent stocks diving. the fed chief warning the cure to high inflation could create painful conditions for american households. while higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. these are the unfortunate costs of reducing inflation. but a failure to restore price stability to mean far greater pain. and cnn s christine romans is joining us now on this big week ahead for the economy. yeah, and those comments from the fed chief were a real wake-up call.
past week we received a stark warning from federal reserve chair, jerome powell. on friday he delivered a decisive announcement, a departure from his usual balanced approach. he made clear that there will be some economic pain in the weeks, months, and possibly longer ahead as the fed fights back against the high profit of goods. while higher interest rates slower growth and soft and labor market conditions will bring down inflation they will also bring some pain to households and businesses. these are the unfortunate costs of reducing inflation. a failure to restore priced ability would mean far greater pain. for their part, investors did not like the message from powell. the s&p 500 which is an index that tracks the stop of the top 500 critically that is the index worst daily showing since mid june of this year. the nasdaq also finished the day down about 4%. the dow is up down about 3%.
interest rates high for some time. listen to what he said. while higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. these are the unfortunate costs of reducing inflation. is raising interest rates again a mistake? how likely do you think it is that a recession is coming if the interest rates continue to go up? i just want to translate what joer roam powell just said. what he calls some pain means putting people out of work, shutting down small businesses, because the cost of money goes up, because the interest rates go up. you do sound like you think it s a mistake to raise interest rates again? i am very worried about this because the causes of inflation, things like the fact that covid is still shutting down parts of the economy around the world,