{"id":988,"date":"2022-04-11T07:59:19","date_gmt":"2022-04-11T07:59:19","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=988"},"modified":"2026-03-18T11:46:28","modified_gmt":"2026-03-18T11:46:28","slug":"former-official-says-fed-may-have-to-hurt-markets-more","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2022\/04\/11\/former-official-says-fed-may-have-to-hurt-markets-more\/","title":{"rendered":"Former Official Says Fed May Have to Hurt Markets More"},"content":{"rendered":"<p>The fear of Federal Reserve interest-rate increases have helped send stock and bond prices down in recent months.<\/p>\n<p>The S&amp;P 500 has slid 6% so far this year, and the 10-year Treasury yield has climbed 115 basis points.<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/content.jwplatform.com\/players\/WFVI7BLM-kgviJALd.html\" width=\"640\" height=\"360\" frameborder=\"0\" scrolling=\"auto\"><\/iframe><\/p>\n<p>But for the Fed to get inflation under control, the carnage will have to get worse, William Dudley, former president of the New York Federal Reserve Bank,\u00a0wrote in a column on Bloomberg.<\/p>\n<p>Consumer prices soared 7.9% in the 12 months through January.<\/p>\n<p>\u201cTo be effective, [the Fed] will have to inflict more losses on stock and bond investors than it has so far,\u201d he said.<\/p>\n<p>The Fed\u2019s policy affects the economy by affecting financial conditions, Dudley notes.<\/p>\n<p>\u201cSo far, the Fed\u2019s removal of stimulus hasn\u2019t had much effect on financial conditions,\u201d with stocks and bonds not moving that much, he said.<\/p>\n<p>\u201cFinancial conditions need to tighten,\u201d Dudley said. If this doesn\u2019t happen on its own (which seems unlikely), the Fed will have to shock markets to achieve the desired response.\u201d<\/p>\n<h2 id=\"jamie-dimon-weighs-in-again\">Jamie Dimon Weighs In Again<\/h2>\n<p>Meanwhile, JPMorgan Chief Executive Jamie Dimon referenced the Fed\u2019s impact on financial markets in a recent\u00a0letter to shareholders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The fear of Federal Reserve interest-rate increases have helped send stock and bond prices down in recent months. The S&amp;P 500 has slid 6% so&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-988","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=988"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/988\/revisions"}],"predecessor-version":[{"id":989,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/988\/revisions\/989"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}