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Published: Aug 29, 2022 5 min read

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Stock Trader Looking Up At Screens At NYC Stock Exchange

Summer is coming to an end. And, alas, the same may be said for stocks' recent rally.

Stock market investors finally got some relief over the last few months after a rough start to the year. The S&P 500 fell into a bear market in June but then rose around 17% by mid-August. Investors hoped that better-than-expected July inflation numbers supported the idea that the high prices of goods and services we've seen across the country had peaked, and the Federal Reserve would be able to slow its interest rate hikes as a result.

But on Friday, Fed Chair Jerome Powell indicated that the central bank had no plans to hit pause on rate hikes, which it uses to attempt to curb inflation.

"Restoring price stability will likely require maintaining a restrictive policy stance for some time," Powell said in a speech at the Fed's annual meeting in Jackson Hole, Wyoming. "While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses."