Markets are teetering on the edge and the tension is growing by the hour. Michael Hartnett warns that if the S&P 500 falls to roughly 6,600, policymakers may feel forced to act. At the same time, Jerome Powell is expected to signal that stagflation risks are rising, meaning slower growth coinciding with higher inflation.
This creates a trap. The Fed cannot cut rates without inflating prices further, and raising rates would crush markets that are already under strain. Investors are betting on intervention, yet the tools available are limited and every decision carries a heavy cost.
BOFA: STOCK MARKET NEAR LEVEL THAT COULD SPUR POLICY ACTION
Michael Hartnett warned that if the S&P 500 drops further—around 6,600, just 1% below recent levels—it could trigger a policy response from the White House or the Federal Reserve.
Hartnett cited soaring oil prices, a… pic.twitter.com/GFo9a08VO5
— *Walter Bloomberg (@DeItaone) March 13, 2026
POWELL EXPECTED TO WARN OF STAGFLATION RISKS
Ahead of the March Fed meeting, Jerome Powell is likely to acknowledge stagflation risks as oil prices surge, according to Bank of America.
The Summary of Economic Projections is expected to show higher headline and core inflation,…
— *Walter Bloomberg (@DeItaone) March 13, 2026
This is not getting nearly enough attention:
The 10Y Note yield is now up nearly +35 basis points since the Iran war began on February 28th.
While gas prices are rising, mortgage rates are quickly following.
All while rate cuts in 2026 are being priced-out. pic.twitter.com/5mfrJTCosT
— The Kobeissi Letter (@KobeissiLetter) March 13, 2026
I t thought we could catch a bid today but the news about the Marines–war fighters– going to the Middle East is cause for concern. Boots on the ground?
— Jim Cramer (@jimcramer) March 13, 2026