WASHINGTON (NewsNation) — Wall Street tumbled into what’s called a bear market Monday as fears about a fragile economy and rising interest rates sent the S&P 500 more than 20% below its record set early this year.
NewsNation business contributor Lydia Moynihan said we can expect to see continued volatility in the market.
“It’s going to continue until we have a clearer picture of what the Federal Reserve is going to do when it comes to raising the Fed funds rate,” she said.
Federal Reserve policy is to promote a “Goldilocks” economy — a sweet spot of interest rates high enough to tamp down systemic inflation, but not so high that they put the U.S. into a prolonged recession.
The Associated Press contributed to this report.