Wednesday, October 10, 2018
After a nine-year streak of economic expansion and artificially low rates, the Federal Reserve has just begun a series of hikes for its benchmark borrowing rate. Fed chair Jerome Powell approved the latest rate increase on Sept. 26, his third such move since February. When rates go up, investors typically pull money out of the stock market in favor of safer assets and interest-bearing accounts.
After the closing bell, a White House official told reporters: "This is a bull market correction. It is probably healthy, it will probably pass. The economy remains strong."