The Fed’s inflation warning reverberates in global markets. –

Markets around the world fell on Monday, extending the previous week’s declines, as comments from officials at the Federal Reserve and other central banks on their determination to rein in rising prices continued to reverberate.

The S&P 500 fell 0.7 percent, adding to losses on Friday, when the benchmark index recorded its worst daily decline since mid-June. Jerome H. Powell, the Fed chair, said in a closely watched speech that day that the central bank must continue raising interest rates to beat back the fastest inflation in decades. He warned that the campaign to cool the economy would come at a cost to workers and overall growth.

The two-year U.S. treasury yield rose to a peak of 3.48 percent — its highest level since November 2007 — on expectations of another big interest rate increase from the Fed, before easing slightly over the course of the day to end at 2.43 percent.

The dollar, after posting gains early in the day, traded flat against a basket of currencies of major trading partners. The price of West Texas Intermediate crude oil, the U.S. benchmark, increased 4.2 percent to just over $97 dollars a gallon.

Stocks also fell on Monday in Asia and Europe, with benchmark indexes in Japan and Korea losing more than 2 percent. Europe’s Stoxx 600 fell about 0.8 percent.

Other central bankers attending the Fed conference in Wyoming echoed Mr. Powell’s determination to curb inflation, even if it generated economic pain in the process.

Rhee Chang Yong, the governor of the Bank of Korea, told Reuters on Saturday that the central bank would keep raising rates until inflation moderated, and may have to continue tightening policy in step with the Fed to support the value of the South Korean won, which has fallen more than 10 percent against the dollar this year.

Policymakers should “not pause at the first sign of a potential turn in inflationary pressures,” Isabel Schnabel, a member of the European Central Bank’s board, said on Saturday. “Rather, they need to signal their strong determination to bring inflation back to target quickly.”

The Fed’s preferred measure of inflation eased in July, a widely expected moderation that is nevertheless likely to be welcome news for policymakers in the United States. Inflation in the eurozone, which is running at the highest rate since the creation of the euro in 1999, is expected to show another acceleration in August, in data set for release on Wednesday. Consumer prices in Britain, which jumped 10.1 percent last month, the fastest rate among Group of 7 nations, are also expected to rise further, as energy prices soar.

Economic growth in the United States has slowed as borrowing costs rise, but the extent of the decline remains unclear. Some recent data has eased fears that the U.S. economy was entering a recession, although there are signs of weakness. Americans’ incomes rose last month and, for once, those gains weren’t swallowed up by higher prices. Forecasters, who have been wrong-footed by strength in the labor market recently, expect a significant slowdown when data on hiring in August is released on Friday.