Fed Hints at Higher Interest Rates, Stocks Slide on Wall Street

The Federal Reserve's new head, Kevin Warsh, hinted that interest rates may remain firm, causing stocks to slide on Wall Street. In a speech at the Fed's annual Jackson Hole economic symposium in Wyoming, Warsh echoed his predecessor's position: 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'

The Standard & Poor's 500 fell 19.23 points, or 0.25 percent, to end at 7,711.76. The Dow Jones Industrial Average slipped 9.45 points, or just 0.02 percent, closing at 53,559.99.

Investors and traders pointed to a combination of factors behind the pullback, including cautious comments from Federal Reserve officials and lingering concerns over corporate earnings growth in the second half of the year.