Fed's Inflation Policy Under Scrutiny as Wall Street Loses Confidence

Federal Reserve Chair Kevin Warsh insists the central bank will take whatever action necessary to bring U.S. inflation to its 2% target, but market sentiment suggests investors are not convinced. In the last 24 hours, the S&P 500 declined by 1.2%, while the Nasdaq fell 1.5%. The 10-Year U.S. Treasury yield dropped below 4% for the first time since the late 1990s. Investor skepticism over the Fed's resolve has triggered a 3% decline in stocks like Tesla and Microsoft. The Cloud Computing sector saw a 2.1% drop as expectations for revenue growth from AWS and Google Cloud dimmed. In the Semiconductor space, TSMC and Intel stocks fell 1.8% amid concerns over potential Fed rate hikes. The Crypto Market experienced 2.5% volatility in Bitcoin and Ethereum prices. Analysts warn that this market reaction could intensify if the Fed's upcoming meeting signals more aggressive policy tightening.