On the heels of a poor jobs report, widespread fears of a U.S. recession sent global markets tumbling Monday, with the Dow Jones Industrial Average falling by more than 1,000 points in midday trading. Gregory Daco is a chief economist at the management consulting firm EY-Parthenon. He says while short-term market volatility can raise concerns about Americans' 401 retirement accounts, it's not always a sign of long-term financial issues.
'The numbers were a little bit weaker than anticipated and there was a fear that essentially the Fed was behind the curve when it comes to easing monetary policy.'RELATED STORY | Is the US in a recession? A survey found most Americans think so, and here's whyThe Federal Reserve implemented a series of interest rate hikes in 2022 and 2023 to combat high inflation, and rates have remained at their highest levels since early 2001 for the last 12 months — between 5.25% and 5.5%.