US stock market falls amid statements of Fed's chief

US stocks fell sharply on August 26 on statements from Federal Reserve Chairman Jerome Powell, who reaffirmed the US central bank's determination to continue tightening monetary policy to bring inflation under control, Report informs citing Interfax.

Powell's statements at the annual economic symposium in Jackson Hole were more "hawkish" than market participants expected, Market Watch notes.

Powell sought to shatter any investor hopes that further Fed tightening would be less aggressive, saying that restoring price stability required tough action from the Fed.

"We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%," Powell said, suggesting that "restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy."

"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," he said. "These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain."