The Stock Market Could Drop: 2 Urgent Warnings From Former Fed Chair Jerome Powell Explain Why.

The Stock Market Could Drop: 2 Urgent Warnings From Former Fed Chair Jerome Powell Explain Why.

Key PointsDuring Jerome Powell's final few months as Federal Reserve chairman, he passed along urgent warnings about economic uncertainty and elevated equity valuations.The Federal Reserve may have to raise interest rates if core inflation remains elevated, and the stock market tends to perform poorly following the pivot to rate hikes.The S&P 500 trades at 20.1 times forward earnings, a premium to the 10-year average of 19, and rich valuations l…