Powell says Fed remains in wait-and-see mode; markets processing policy shifts

ARTICLE SUMMARY

1. Powell indicated the Fed is in "wait-and-see mode" regarding interest rates, saying they are "well positioned to wait for greater clarity before considering any adjustments to our policy stance."

2. Powell acknowledged that recent economic volatility stems from Trump administration tariff policies, noting these tariffs will likely push inflation higher while potentially weakening growth and employment.

3. He stated the Fed expects to move away from its inflation and employment goals "for the balance of this year," as tariffs have proven larger than even the most severe scenarios in initial Fed planning estimates.

4. When asked about a "Fed put" (the idea that the Fed would step in if markets plummet), Powell rejected this notion, which Jim Carroll of Ballast Rock Private Wealth interpreted as hawkish: "I think people were expecting Powell to be neutral and he was hawkish instead. When asked if there's such a thing as a Fed put for the stock market, his answer was 'no'."

   Powell's comments appear to have contributed to extended stock market losses during the session.