Dow drops 1,008 after Fed's Powell says rates will stay high

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NEW YORK — The Dow Jones Industrial Average slumped more than 1,000 points as the stock market had its biggest skid in two months Friday after the head of the Federal Reserve dashed Wall Street’s hopes that it may soon ease up on high interest rates in its effort to tame inflation.

The S&P 500 lost 3.4%, its biggest drop since mid-June, after Jerome Powell said the Fed will likely need to keep interest rates high enough to slow the economy “for some time” in order to beat back the high inflation sweeping the country.