Stocks Suffer Worst Drop in a Month; Dollar Climbs: Markets Wrap
- Powell says central bank’s ‘powerful tools’ have limitations
- We’re not going back to pre-pandemic economy: Fed chief
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Stocks posted their biggest decline in a month amid concern that the global economic recovery will lose momentum with further shutdowns to contain a coronavirus resurgence.
Traders watched closely Federal Reserve Chair Jerome Powell’s remarks during a town hall with educators and students, where he noted the central bank’s “powerful tools” have limitations. Powell also said that Covid-19 will likely stay “for a while,” and we’re not going back to a pre-pandemic economy. Policy makers will gather next week for the Jackson Hole symposium, the Fed’s most-prominent annual conference.