Investors puzzled by Powell’s mixed signals on Fed policy
Investors are confused by recent statements from Federal Reserve Chair Jerome Powell. On one hand, he pledged to purchase $40 billion in Treasury securities over the next 30 days and continue bond buying in the coming months. On the other, he indicated that interest rates are nearing a neutral zone, hinting at a potential end to monetary easing, causing uncertainty in the markets.
Source The Wall Street Journal
The key issue, according to market charts, is that the Fed aims to begin quantitative easing (QE) just 10 days after concluding quantitative tightening (QT), which may signal serious economic challenges ahead. Meanwhile, Bitcoin is surging above $94,000, and investors are eagerly awaiting Powell’s speech to clarify his stance and potentially resolve lingering doubts.
The coming morning will be crucial to see if investors find reassurance or if market uncertainty deepens following the Fed chair’s remarks. The financial markets remain tense and ready for possible shifts in U.S. monetary policy.
