Aohui official website: Powell's heavy statement detonated the market! "The Federal Reserve will never rescue the market" behind three hidden crisis signals

Federal Reserve Chairperson Powell made it clear at the Chicago Economic Club on Wednesday (April 16) that he will wait for more economic data before deciding the direction of interest rate adjustment. He particularly emphasized that the recent market volatility is a reasonable response to the Trump administration's tariff policy, and bluntly denied the possibility of "Federal Reserve support". This hawkish comment directly contributed to the decline of US stocks.

Policy dilemmas under double pressure

Powell pointed out that the current Federal Reserve faces a rare challenge: on the one hand, tariffs may push up inflation, and on the other hand, economic growth and employment may weaken.AUSFOREX official websiteAdmit: "This year is likely to deviate from the 2% inflation target and full employment." What's more alarming is that Trump's tariff policy is regarded as a "fundamental change", and its impact exceeds even the Federal Reserve's most severe estimates. Historical experience is difficult to refer to.

The truth behind the market turmoil

In response to the recent financial volatility, Powell believes that the market is still functioning normally: "The bond and equity markets are effectively digesting uncertainty." But Ballast Rock private wealth advisor Jim Carroll pointed out that Powell broke market neutral expectations and "when asked about the possibility of a bailout, his'no 'was shockingly straightforward." The data showed that the decline of US stocks further extended after the speech.

Three hidden dangers of economic undercurrents

Slowing growth: GDP growth slowed in the first quarter, consumer spending weakened, and imports were skewed before tariffs

Confidence crisis: Business and household confidence index plummets, trade policy becomes the greatest uncertainty

The Federal Reserve is closely monitoring the Supreme Court's legal precedent over Trump's firing of independent officials, but Powell stressed that "Fed independence is protected by law."

Summary: Difficult choices at a crossroads

At present, the federal funds rate remains in the range of 4.25% to 4.5%, but the process of inflation falling back to the 2% target has stalled. Powell warned that tariffs could lead to "short-term spikes in inflation or even long-term solidification", and that the labor market, although at full employment, may face a difficult situation of inflation and unemployment in the future. As Powell said: "We will evaluate the degree of deviation from each target", the difficulty of this policy balancing technique is increasing exponentially.