Star Fashion Stock Plunges 14% on Fed Policy Concerns

Star Fashion's stock price plummeted by 14% in pre-market trading on August 22, 2025, as broader market sentiment was impacted by concerns over Federal Reserve policy and potential risks to bank reserves.

Star Fashion's stock decline was influenced by the Federal Reserve's meeting minutes, which highlighted potential risks to bank reserves due to increasing Treasury accounts and balance sheet reduction. These concerns led to a broader market downturn, with major U.S. indices experiencing pre-market declines.

Federal Reserve Chair Jerome Powell is expected to maintain a neutral stance at the upcoming Jackson Hole meeting, emphasizing data dependency for policy decisions. Key data points, such as inflation and employment reports, will guide future rate changes, adding to the market's uncertainty.

Star Fashion's stock price was also affected by the overall market sentiment, which was dampened by the Fed's concerns and the potential for further rate cuts. Federal Reserve official Raphael Bostic indicated there could be one additional interest rate cut this year, reflecting ongoing monetary policy adjustments.