Dow plunges 400 points as Fed official signals rate hike in 2022

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Stocks plunged on Friday with the Dow suffering its worst week since January after a Federal Reserve official said the next interest rate hike could come as soon as next year.

The Dow Jones industrial average lost 533 points, or 1.6 percent, to close at 33,290 on Friday, leaving the blue-chip index down more than 3 percent for the week.

The S&P 500 fell 0.8 percent, while the tech-heavy Nasdaq dropped 0.6 percent.

Policymakers had signaled Wednesday they expect the initial rate hike to be in late 2023, sooner than most members expected at the Fed’s meeting in March.

But St. Louis Federal Reserve President James Bullard called the revised timeline “hawkish” and said on CNBC Friday that he sees the Fed increasing rates by the end of next year amid white-hot inflation.

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