– When the Fed said earlier this week that it might start a rate hike from 2023, the stock market wasn’t happy. When a Fed official said Friday the hikes could come even sooner, sentiment in the market got worse. In early trading, the Dow lost about 480 points, or 1.4%, while the benchmark S&P 500 lost nearly 1% and the Nasdaq lost about 0.5%. The sharp falls have put the market in its worst week since January, reports the Wall Street Journal. They came after St. Louis Federal Reserve President James Bullard told CNBC that the first rate hike could come in 2022, with rising inflation being the main reason.
“We expect a good year, a good reopening,” said Bullard. “But this is a bigger year than we expected, higher inflation than we expected. I think it’s natural for us to be a little more restrictive here to contain inflationary pressures. ”The reopening of the economy has seen prices for materials from wood to oil rise, the AP explains. (Read more stock market stories.)