Stocks tumble as Fed chairman warns of coming 'pain' to 'households and businesses'

Stocks on Friday tumbled noticeably in morning and afternoon trading, dipping shortly after the chairman of the Federal Reserve warned of economic difficulties that will arise from the Fed's attempts to ease inflation. 

The Dow dropped nearly 1,000 points from late morning into early afternoon, hovering around 32,500 as trade floors headed into the week's home stretch on Friday. 

The NASDAQ, meanwhile, had over the same time period fallen nearly 400 points, or more than three percent, with the NASDAQ-100 falling even more sharply at 3.25 percent. 

The dips came shortly after Federal Reserve Chairman Jerome Powell warned of continuing economic pain as the Federal Reserve continues its attempts to tamp down heavy inflation throughout the economy. 

“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” he said in his annual Fed policy speech at Jackson Hole, Wyo. on Friday.

“These are the unfortunate costs of reducing inflation," he said. "But a failure to restore price stability would mean far greater pain.”