Scott Minerd said that the Fed won't worry about stocks falling until panic floods the markets.
"As long as the sell-off is orderly, the Fed are not concerned with the level of stock prices."
He said that until we see some amount of panic here or something that gets the central bankers concerned, they are just hell-bent to get inflation under control.
The point at which the Fed comes to the stock market's rescue was discussed by minerd. The Fed Chair and his colleagues have not shown any interest in intervening in the stock market.
The Fed has said it will keep raising interest rates. The consumer price index rose by 8.6% in the year to May, the fastest rate of increase since 1981 The central bank hiked its rates for the first time in 18 years.
The sanctions against Russian crude have led to a rise in the price of oil.
The stock market has been affected by the economic outlook. After falling more than 20% from its January high, the S&P 500 tipped into a bear market as investors worried about an imminent economic recession.
Morgan Stanley has warned that the stock market is likely to fall another 10% before reaching a bottom.
Powell said that the Fed isn't trying to cause a recession, but it is possible. The centralbanker tried to calm investors by promising to fight inflation.
The Fed is unlikely to act until the stock market gets out of control. He said that the Fed and central banks would press on until they broke something.