Powell: Don't Expect Fed to Step in and Save the Market, Trump Changes Every Day

BlockBeats News, April 17th. Federal Reserve Chairman Powell said on Wednesday that the market's expectation for the Fed to step in to calm volatility may be misguided. When asked if the Fed would intervene to address 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, dealing with a lot of uncertainty, which means volatility. Given the significant changes in the U.S. President Trump's tariff regime, it is understandable that the market will face difficulties."

He also explained that it is difficult to know in real time what is causing the trouble. Powell said, "I have experience with many significant market fluctuations, such as the bond market. Usually, people form an idea, and then two months later they look back and realize that their initial view was completely wrong. Therefore, it is too early to conclude what is happening in the market." Currently, he noted that part of the market turmoil stems from hedge funds cutting leverage or debt, and added, "In the short term, you may continue to see market volatility." (FXStreet)