Powell: Don't expect the Fed to bail out Trump is changing every day

On April 17, Federal Reserve Chairman Jerome Powell said on Wednesday that the market’s expectation that the Fed would intervene to calm volatility may be wrong. Asked if the Fed would intervene in response to the sharp drop in the stock market, Fed Chair Jerome Powell said, “My answer is no, but I’ll give an explanation.” “I think the market is digesting the current situation, the market is dealing with a lot of uncertainty, and that means volatility,” Powell said at the meeting in Chicago. Powell said that given that US President Donald Trump’s tariff regime is changing dramatically, it is understandable that the market will have difficulties. He also explained that it is difficult to know in real time what is causing the trouble. “I’ve had a lot of experience with major market movements, such as the bond market,” Powell said. Often, people form an idea, look back two months later, and find that they were completely wrong. Therefore, it is too early to conclude what is happening in the market. For now, he noted that part of the turmoil in the market stems from hedge funds cutting leverage or debt, adding: “In the short term, you may continue to see volatility in the market.” ”