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When the markets fall: Fed chair predicts more ‘pain’ for stock markets in coming weeks

When the markets fall: Fed chair predicts more ‘pain’ for stock markets in coming weeks

The Federal Reserve chair said Monday that he believes that the economic pain that has been experienced by the financial markets over the past year will “get worse” over the coming months, and that the financial sector will likely see more pain than expected in coming months.

In his speech to a group of business leaders in Washington, D.C., Fed Chair Janet Yellen said that her goal for the next few months is to ensure that markets remain “healthy,” but that the Fed is not “trying to punish” markets.

Yellen said markets are already experiencing “a fair amount of pain” as a result of the economic slowdown and the housing market’s inability to recover, but that “we have to be careful because we’re not trying to punish anyone.”

Yellen’s comments come as the Fed tries to shore up the economy and stimulate the economy, but it also comes as the financial crisis continues to take its toll.

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