This week crushed any remaining hopes of a soft landing. The S&P 500 sank 2.2%, the Nasdaq lost over 3%, and Treasury yields fell as investors fled risk amid rising policy paralysis. The trigger? Jerome Powell’s remarks in Chicago, where he effectively confirmed stagflation is in play—slower growth, sticky inflation, and rising unemployment.

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Powell admitted the Fed’s dual mandate is now “in tension” and made it clear there would be no intervention to prop up asset prices. No Fed put, no pivot, no lifeline. With corporate capex slumping and business sentiment deteriorating, gold soared, the dollar slipped, and volatility surged. The markets didn’t just flinch—they started bracing for impact.