Powell: Don't expect the Federal Reserve to bail out the market, Trump is changing every day

Federal Reserve Chairperson Jerome Powell said on Wednesday that the market's expectation that the Federal Reserve will step in to quell volatility may be wrong. Asked if the Fed would intervene in response to a sharp drop in the stock market, Federal Reserve Chairperson Powell said: "My answer is no, but I will provide an explanation." Speaking at the conference in Chicago, Powell said: "I think the market is digesting the current situation, the market is dealing with a lot of uncertainty, and that means volatility." Powell said it is understandable that the market will have difficulties given that the tariff regime of US President Donald Trump is undergoing tremendous changes. He also explained that it is difficult to know in real time what is causing trouble. "I've had a lot of experience with big market swings, such as the bond market," says Mr. Powell. "Usually people have an idea and look back two months later and see that the original view was completely wrong. So it's too early to tell what happened to the market." For now, he points out that some of the market turmoil stems from hedge funds cutting leverage or debt, adding: "In the short term, you may continue to see volatility in the market."