Powell: Don't Expect Fed to Bail Out the Market, Trump Changes Daily

Jinse reports that Federal Reserve Chairman Powell said on Wednesday that the expectation for the Fed to step in and calm market volatility might be mistaken. When asked if the Fed would intervene to address sharp drops in the stock market, Chairman Powell stated, "My answer is no, but I will provide an explanation." Speaking at a conference in Chicago, Powell remarked, "I think the market is digesting the current situation and dealing with a lot of uncertainty, which means volatility." Powell mentioned that given President Trump's tariff policies are undergoing significant changes, it's understandable that the market is facing difficulties. He also explained that it's hard to know in real time what's causing trouble. Powell said, "I've experienced many major market fluctuations, like in the bond market. People often form an opinion, only to look back two months later and find that initial opinion completely wrong. So, it's too early to determine what's happening in the market now." For the moment, he pointed out that the turbulence in the market is partly due to hedge funds reducing leverage or debt and added, "In the short term, you might continue to see market volatility."