Stock-market tumble shows investors now face ‘Fed’s reality’ in inflation fight

A frothy stock market suffered a steep fall Tuesday, as an unexpectedly hot January consumer-price index reading reminded investors that the Federal Reserve’s long-fought battle against inflation isn’t yet won.

“The markets just went too far, too fast and the Fed’s reality is setting in right now,” said Kent Engelke, chief economic strategist and managing director at Capitol Securities Management, in a phone interview.

Reality…