TechFlow news, April 17 — Federal Reserve Chair Powell said that market expectations for the Fed to step in and calm volatility may be misguided. When asked whether the Fed would intervene in response to a sharp stock market decline, Powell stated: "My answer is no, but I'll explain why." Speaking at a conference in Chicago, Powell said, "I think the market is digesting the current situation. The market is reacting to a great deal of uncertainty, and that means volatility." Powell noted it was understandable that markets would face difficulties given the significant changes underway in President Trump's tariff policies. He also explained that it is difficult to know in real time what is causing the turmoil. "I've seen many major market fluctuations before, such as in the bond market. Often people form an idea at the time, and then two months later you look back and realize that initial view was completely wrong. So it's too early right now to determine exactly what's happening in the market," Powell said. He pointed out that current market turbulence is partly due to hedge funds reducing leverage or debt, adding, "In the short term, you may continue to see market volatility."
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