On Monday, stock markets in the US finished down due to worries that the central bank would continue raising interest rates.

The Federal Reserve’s chairman, Jerome Powell, said that increases will continue in an effort to slow the pace of price growth.

The technology-heavy Nasdaq, S&P 500, and Dow Jones Industrial Average all ended down.

The US economy has contracted for two straight quarters, and inflation in the country is at a level not seen in four decades.

However, the US, which utilizes other statistics to make that determination, does not classify that milestone as an economic recession.

On Friday, Mr. Powell told a group of central bankers at the Jackson Hole Economic Symposium in Wyoming that the US Fed would move “forcefully” to limit inflation even if it would cause “some pain” for individuals and companies. Monday’s decline added significantly to Friday’s severe losses.

“Restoring pricing stability will take considerable time, and it will involve employing our instruments firmly to better balance supply and demand,” he added.

“While slower GDP, higher interest rates, and a weaker labor market may help to reduce inflation, they will also hurt some people and companies. These are the regrettable consequences of lowering inflation. However, failing to achieve price stability would cause far more suffering.

The S&P 500 was down 0.67%, the Nasdaq was down 1.02%, and the Dow Jones concluded Monday’s trading day down by 0.57%.

The decline comes after a significant decline on Wall Street on Friday, when all three indexes fell by more than 3%. Since June, the Nasdaq saw its worst day performance.

At the conclusion of trade on Monday, technology companies Apple Inc., Microsoft Corp., and Tesla Inc. were all down between 1.07% and 1.37%.

Investors worry that if economic growth slows, rising interest rates would make a recession more likely.

According to Rod von Lipsey, managing director of UBS Private Wealth Management, “Investors are accepting the notion that the Fed is serious about containing inflation.”

In reaction to skyrocketing costs, the central bank recently increased interest rates. Higher rates make borrowing more costly for people and businesses, which may stifle inflation and hinder economic development.

In July, the Federal Reserve increased its benchmark interest rate by 0.75 percentage points, with a target range of 2.25% to 2.5%. The Federal Reserve’s benchmark interest rate was almost zero in March.