FinancialfocusHub.com
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
FinancialfocusHub.com
No Result
View All Result
ADVERTISEMENT

Powell’s Comments Fail To Soothe Tariff-Hit Stock Markets

Alice by Alice
2025-04-17
in Stocks
Powell’s Comments Fail To Soothe Tariff-Hit Stock Markets
ADVERTISEMENT

Investors who had hoped the Federal Reserve would offer aid to markets hit by tariffs got an unwelcome message from its chairman on Wednesday: The Fed may be in trouble.

Federal Reserve Chairman Jerome Powell said the central bank will wait for more data on where the economy is headed before adjusting interest rates. Speaking at the Economic Club of Chicago, he pointed to the dire situation the Fed could face: tariffs driving up inflation while growth and, potentially, hiring, could weaken.

ADVERTISEMENT

Investors worry that persistently high inflation will hamper the Fed, which typically cuts rates to support a weakening economy but is reluctant to do so for fear it would cause inflation to surge.

ADVERTISEMENT

Investors said Powell’s comments were tougher than expected as markets have been hammered in recent weeks by President Trump’s sweeping tariffs, raising concerns about an impending recession.

ADVERTISEMENT

“I think the market was hoping for a more dovish signal from the Fed that they were getting closer to cutting rates. And it didn’t,” said Michael Arone, chief investment strategist at State Street Global Advisors.

Since Trump announced the tariffs on April 2, stocks have experienced their most violent trading swings since the coronavirus pandemic struck five years ago.

The rapidly changing tariff situation has made it difficult for investors and businesses to determine their economic impact, as Trump has suspended high tariffs on many countries while the trade war with China escalates.

The benchmark S&P 500 index closed down 2.2% on Wednesday and is down 14% from its all-time high in February, while the tech-heavy Nasdaq Composite Index fell 3.1% on the day.

Mark Malek, chief investment officer at Siebert Financial, said the Fed is in a “very tricky situation” because of its dual mandate of maximum employment and stable prices.

Powell “finally acknowledged that tariffs will cause some form of inflation this year, which will definitely lead to lower capital spending and higher unemployment,” Malik said.

“They need to keep unemployment low and prices low, and both of those things are not working in the Fed’s favor right now.”

On Wednesday, traders did bet that the Fed would cut interest rates this year. That includes bets that the Fed will resume cutting rates in June and that the policy rate, currently in a range of 4.25%-4.50%, will be nearly a full percentage point lower by the end of the year.

Investors said Powell also made comments about a “Fed put,” where the Fed would step in if markets plunged, which could have spooked markets.

Asked if there was a “Fed put,” Powell said no and explained why. He said markets are dealing with uncertainty and volatility but are functioning normally and in an orderly manner.

Powell’s comments could be interpreted as “not necessarily relying on a ‘Fed put,’ that is, don’t rely on the Fed to bail us out,” said Sam Stovall, chief investment strategist at CFRA Research. “It might be a way of saying, oops … we really don’t have a safety net.”

Stocks were already weak before Powell’s afternoon speech, but losses intensified after his speech. The major indexes were dragged lower by technology stocks after Nvidia warned of huge losses from new U.S. restrictions on its chip exports to China.

Some investors said Powell may have simply confirmed what the market already feared – a slowing economy coupled with inflationary pressures.

“He suggested that if tariffs remain at current levels, there could be difficulties ahead for the economy,” said Rick Meckler, partner at Cherry Lane Investments. “I think investors know that. He’s just underscoring it.”

Related topics:
  • What Cash App Stocks Should I Buy?
  • When Should You Buy Stocks
  • How to Analyze Bank Stocks
ADVERTISEMENT
Previous Post

Triumph Financial Stays Aggressive Despite Loss And Falling Stock

Next Post

Trump’s Trade War Hits Business, Hitting Stocks Again

Alice

Alice

Related Posts

Stocks4
Stocks

6 Types Of Stocks Worth Investing In

2025-04-30
How To Buy Stocks Online: A Step-By-Step Guide
Stocks

How To Buy Stocks Online: A Step-By-Step Guide

2025-04-30
What Are Multiplier Stocks?
Stocks

What Are Multiplier Stocks?

2025-04-30
What Is Diversification In Stocks?
Stocks

What Is Diversification In Stocks?

2025-04-30
What Are Vested Stocks?
Stocks

What Are Vested Stocks?

2025-04-29
What Is Dilution in Stocks?
Stocks

What Is Dilution in Stocks?

2025-04-29
What Are Puts in Stocks?
Stocks

What Are Puts in Stocks?

2025-04-29
What Are the Mag 7 Stocks?
Stocks

What Are the Mag 7 Stocks?

2025-04-29
How to Find Stocks to Swing Trade?
Stocks

How to Find Stocks to Swing Trade?

2025-04-29
Next Post
Trump’s Trade War Hits Business, Hitting Stocks Again

Trump's Trade War Hits Business, Hitting Stocks Again

Insurance

What Is A Beneficiary In Insurance?

Insurance24

What Is The Indemnity Payer In Insurance?

Popular Articles

How Much Is 1 Million Shillings in USD?
Forex

How Much Is 1 Million Shillings in USD?

by jingji05
2025-04-30

The exchange rate between currencies is a fundamental concept in global finance. For individuals and businesses engaged in international trade,...

What Is Proof Of Insurance?

What Is Proof Of Insurance?

2025-04-26
How to Cancel Pumpkin Pet Insurance?

How to Cancel Pumpkin Pet Insurance?

2025-04-27
How to Invest in International Stocks?

How to Invest in International Stocks?

2025-04-26
How to Read an Insurance Card?

How to Read an Insurance Card?

2025-04-25
5 Reasons Why Insurance Rates Are Rising

5 Reasons Why Insurance Rates Are Rising

2025-04-28
Alibaba Unveils Qwen 3 Ai Amid Rising Tech Rivalry

Alibaba Unveils Qwen 3 Ai Amid Rising Tech Rivalry

2025-04-29
Insurance16

What Is FMO In The Insurance Industry?

2025-04-25

Recent Posts

Wall Street Reacts To Trump-Powell Feud
News

Wall Street Reacts To Trump-Powell Feud

by Alice
2025-05-01

Investors worry Trump's attack on Powell will add to the pain 2. "For our country": China's patriots are buying on...

Trump Media Pushes Forward On Cryptocurrency And ETF Plans

Trump Media Pushes Forward On Cryptocurrency And ETF Plans

2025-05-01
How Much Is 10,000 Won in Usd?

How Much Is 10,000 Won in Usd?

2025-04-30
How Much Is 10,000 Euros in Usd?

How Much Is 10,000 Euros in Usd?

2025-04-30
What Is 100 Hong Kong Dollars in Usd?

What Is 100 Hong Kong Dollars in Usd?

2025-04-30
How Much Is 1 Million Shillings in USD?

How Much Is 1 Million Shillings in USD?

2025-04-30
How Much Is 100 Quid in Usd?

How Much Is 100 Quid in Usd?

2025-04-30
How Much Usd Is 1000 Bits?

How Much Usd Is 1000 Bits?

2025-04-30

Cryptocurrency

Cryptocurrency27

NFT Marketplace X2Y2 to Shut Down After Three Years as Trading Volume Plummets

2025-04-04
Cryptocurrency

Elon Musk Denies U.S. Government Plans to Use Dogecoin, Cryptocurrency Drops 3%

2025-04-01
Cryptocurrency

Gold Bull Peter Schiff Bets on Bullish Gold Amid Bitcoin’s Struggles

2025-03-30
Cryptocurrency

Fidelity Plans to Launch Spot Solana ETF

2025-03-29
Cryptocurrency

BlackRock Launches Bitcoin ETP in Europe: A Key Step for Institutional Adoption

2025-03-28
Cryptocurrency

Closing Bell Movers: GameStop Gains 7% on Earnings, Bitcoin Announcement

2025-03-27
FinancialfocusHub.com

FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.

Recent Posts

  • Wall Street Reacts To Trump-Powell Feud 2025-05-01
  • Trump Media Pushes Forward On Cryptocurrency And ETF Plans 2025-05-01
  • How Much Is 10,000 Won in Usd? 2025-04-30
  • How Much Is 10,000 Euros in Usd? 2025-04-30
  • What Is 100 Hong Kong Dollars in Usd? 2025-04-30

TAGS

Useful Links

ABOUT US

Disclaimer

Privacy Policy

Copyright © 2024 financialfocushub.com

No Result
View All Result
  • Home
  • Forex
  • Insurance
  • News
  • Stocks

Copyright © 2024 FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.