Chairman Powell took the air out of the capital markets last Friday.

In case anyone missed it, Chairman Powell reminded everyone the Fed is going to continue to raise managed rates. He said at his annual speech at the Jackson Hole gathering of economists (a convention with really wild nighttime activities where a discussion of equilibrium takes on a whole new meaning from other conventions) that the Fed is willing to accept a rise in unemployment and a recession in order to get inflation down to 2%. This shocked investors who apparently had begun to price in expectations of a pivot from their current policy of removing accommodative monetary policy. The stock market dropped, and market interest rates rose on this revelation.