Markets Dip, Powell Says Fed Is Buying

Federal Reserve Chair, Jerome Powell, is giving oral testimony to the United States Senate Committee on Banking, Housing, and Urban Affairs today. 

The S&P 500 and the Nasdaq are coming off of five consecutive days of losses — the longest losing streak in over a year.

Markets were shaky at the open, with all major indexes opening in the red. The Nasdaq fell as much as 4% in the first 20 minutes of trading, reaching its lows of the day at 9:50 a.m. Eastern.

The committee convened at 10 a.m. Powell gave his opening remarks around 10:20 a.m., during which he stated the Fed’s goal is to achieve maximum employment and low inflation.

Powell stated that the Fed is currently “a long way from [its] goals.”

The Fed has been injecting $120 billion per month in the economy for over a year now.

Powell said that the Fed will continue to “increase holdings” in stocks and bonds for as long as needed. And despite the challenges the economy is facing, he expects a “robust and complete recovery”

Buying has dominated the markets since the hearing began. At writing, the Nasdaq is down only 1.2%. The S&P 500 fell as much as 1.6% at the open and is now down less than 0.4%.

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Image: Adam Dodd/