S&P 500 Drops 1.2% After Warsh Hints of Fed Changes

Stocks tumbled on Wednesday after Federal Reserve Chairman Kevin Warsh foreshadowed big changes to how the central bank will operate. The Dow fell 507 points, or 1%. Sevens Report Research’s Tom Essaye told Barron’s the market reacted to the “litany of changes that Warsh is proposing” that could lead to uncertainty and less communication from the central bank.