#PowellRemarks
Jerome Powell has once again delivered his speech, and the markets reacted as if they had received a cold shower. Speaking at the Economic Club of Chicago, the Fed chair warned that Trump's new tariffs could spike inflation and harm employment. Instead of promising rate cuts, Powell indicated that the Fed would be patient while observing the situation. Investors were hoping for a dovish tone but received a warning about the potential effects of protectionism. The S&P 500 fell by 2.2%, Nasdaq by 3.1%, and tech companies like Nvidia took a hit. Powell emphasized that current market conditions are stable but did not rule out intervention in the event of more serious disruptions. In short: the Fed does not intend to rescue the market at all costs, and investors need to prepare for greater volatility.
Jerome Powell has once again delivered his speech, and the markets reacted as if they had received a cold shower. Speaking at the Economic Club of Chicago, the Fed chair warned that Trump's new tariffs could spike inflation and harm employment. Instead of promising rate cuts, Powell indicated that the Fed would be patient while observing the situation. Investors were hoping for a dovish tone but received a warning about the potential effects of protectionism. The S&P 500 fell by 2.2%, Nasdaq by 3.1%, and tech companies like Nvidia took a hit. Powell emphasized that current market conditions are stable but did not rule out intervention in the event of more serious disruptions. In short: the Fed does not intend to rescue the market at all costs, and investors need to prepare for greater volatility.