#CongressTradingBan

The Federal Reserve, coldly extinguished the world's hopes

As global investors anticipated a market rescue, the Federal Reserve threw a bucket of cold water. Fed Chairman Powell stated that he would wait for the situation to become clearer before considering adjustments to the policy stance.

Powell's remarks came at a time when the U.S. stock market was falling, and what was poured onto the market was not just a 'bucket of cold water,' but even a 'bucket of ice water':

1. It was originally thought that he would take action to rescue the market because his colleagues had changed their stance the day before to 'support earlier and larger rate cuts than previously expected.' This gave the market hope, and letting that hope shatter is the most frightening thing; it would have been better not to schedule this speech.

2. Between 'the economy' and 'inflation,' Powell chose the latter. Powell said that, to some extent, the Federal Reserve's issue is like a soccer goalkeeper responding to an opponent's penalty kick. One must decide whether to dive right, focusing on inflation, or dive left, focusing on slowing growth. Powell also mentioned that tariffs might have a more lasting impact on inflation and could at least bring about temporary inflation. It is necessary to ensure that rising prices do not lead to persistent inflation, and the Federal Reserve has an obligation to keep inflation expectations stable. It is clear that Powell decided to prioritize 'diving right.'

3. When asked whether there was a 'Fed put option' in the stock market, his answer was 'no.' Do not expect the Federal Reserve to bail out the market.

4. Powell also articulated the concerns that the market has always had—that tariffs could lead to slower economic growth and more stubborn inflation—and this statement from the Fed Chair confirmed all these facts.

5. The reason the Federal Reserve chose not to save the market is not that they 'do not want to,' but rather that they 'cannot,' lacking the flexibility to respond because Trump's tariffs exceeded the Fed's previous highest