Investors Just Got a Reality Check From Fed Chair Kevin Warsh. History Says This 1 Move Is Crucial Right Now.
Key PointsFed Chair Kevin Warsh has repeatedly signaled that more action to control inflation is likely.
Federal Reserve Chair Kevin Warsh warned investors on August 28 that price stability is not automatic and inflation may not self-correct. This stark reality check shook the market, casting doubt on the central bank's promised efforts to tame inflation through rate hikes.
Since Warsh's remarks, the S&P 500 has remained stagnant, waiting for the Fed's next move on whether to raise rates. Market watchers now anticipate a hike, scheduled for September 16.
The warning has significant implications for the $8 trillion in U.S. money market funds, which nearly all investors hold. History suggests that a particular move could be critical for those with funds in these accounts.
Investors who have money in money market funds should closely monitor the Federal Reserve's upcoming decision on whether to increase interest rates.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
