Between July 25, 2025 and August 1, 2025 a Dow pattern developed that is similar to what occurred between April 27, 1981 and May 4, 1981. This was during a period of time when Paul Volker raised the federal funds rate to record highs in order to fight inflation. After the May 4, 1981 gap down a bear market started and did not stop until mid-August 1982. This was known as Paul Volker’s bear market. Jerome Powell continues to hold the federal funds rate well above the current inflation rate. This, among other events, will lead to a Jerome Powell bear market.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
