Jay Powell made it clear Fed is not going to rescue markets

This week, Jerome Powell sent a clear message in the markets. I don’t come to salvation.

The chair of the Federal Reserve Used appearance in Chicago Economic Club In any vague, let’s say that investors should not expect interest rates at any time or any close intervention in the bond market, which took place with President Trump tariffs.

The main time on Wednesday came when Professor Raguram Rajan, a professor at the Chicago Bobby University, asked Powell if he was “fed” in the stock market.

And Powell could not be more open. “I won’t say no.”

Markets “struggle with a lot of uncertainty and that means instability.” But his point of view is that the markets “operate as you would expect them during the high uncertainty period.”

It seemed to be cold water on speculations that Fed may need to restore some calm in the bond market if necessary.

The notice turned last week because yields for long-term debt IeThe prognosis of the forecasts, the Central Bank must provide some liquidity, as investors are absurd positions.

Powell said that these markets remain “regular” and chalk have caused the latest turmoil “historically unique development markets”. What he helped the bond market was postponed this week, relieving the pressure for immediate intervention.

This week, Powell also disappointed investors and the US President, hoping to hear signs, he was ready to reduce the pace as a way to prevent the impact of new tariffs or prevention of pillow means.

According to him, the Central Bank will “wait for greater clarity” before taking into account any interest rate adjustments, as it expects Trump tariffs are highly inflation and slow growth.

Read more: How does the interest rate fed on your bank accounts, loans, credit cards and investments?

Powell predicted a hard decision that the two sides of his mandate were ahead of stable prices and full employment, saying that “strong probability” or at least a lot of progress.

If anything, Powell came out of his hint, he could prefer the inflation to control, noting that feeding without price stability cannot reach a strong job market for a long time. And he became clear that he was not convinced that the inflationary consequences of tariffs would be temporary or long-lasting.