Stocks Calm Broken After ‘Fed Put’ Hopes Dashed: Markets Wrap

Warnings from Jerome Powell that trade tensions risk undermining the Federal Reserve’s employment and inflation goals whipped up fresh volatility on Wall Street Wednesday, with stocks resuming sharp declines while haven assets like Treasuries and gold surged.

Two days of relative calm were broken as the Fed chief signaled a wait-and-see approach to President Donald Trump’s tariff offensive, pushing back on hopes he would act quickly to soothe investors. Stocks extended losses that began earlier when two big semiconductor companies reported earnings disappointments linked to the global trade war.

Asked at the Economic Club of Chicago if he envisioned ...