🚨 Federal Reserve Officials Speak Out! 🚨
On the evening of September 30, Fed’s Collins reassured markets: even if the U.S. government shuts down, the Federal Reserve will keep running at full strength — printing money if needed, managing banks if needed, and setting interest rates if needed.
👉 This message is like a "stabilizing pill" for the market: the heart of the financial system is still beating.
🔎 Looking deeper, two key takeaways emerge:
1️⃣ Fed Independence: Its funding doesn’t rely on government budgets. The Fed earns from bond operations and services to financial institutions — meaning it can keep functioning even if Washington stalls.
2️⃣ Shutdown Side Effects: Economic data delays and paused regulations make decision-making harder. The Fed may need to adjust rates while “driving blindfolded” — adding real risk.
⚖️ In short, the Fed’s words reflect both confidence and helplessness: the system won’t stop, but the uncertainty caused by political deadlock will be carried by the entire market.