Powell: Don't expect the Fed to step in to save the market, Trump changes every day
ChainCatcher news, Federal Reserve Chairman Powell stated on Wednesday that the market's expectation that the Fed will intervene to calm volatility may be misguided. When asked whether the Fed would intervene in response to the sharp decline in the stock market, Fed Chairman Powell said, "My answer is no, but I will provide an explanation." Speaking at a conference in Chicago, Powell said, "I think the market is digesting the current situation, and the market is dealing with a lot of uncertainty, which means volatility."Powell noted that it is understandable for the market to encounter difficulties given the significant changes in President Trump's tariff policy. He also explained that it is difficult to know in real-time what is causing the trouble. Powell stated, "I have had a lot of experience with significant market volatility, such as in the bond market. Typically, people form an idea, and two months later, they look back and realize that their initial view was completely wrong. Therefore, it is too early to determine what is happening in the market now." For the time being, he pointed out that part of the market turmoil stems from hedge funds reducing leverage or debt, adding, "In the short term, you may continue to see volatility in the market."