MNI BRIEF: Powell Says Markets Volatile But Functioning Well
Apr-16 18:07By: Jean Yung
Federal Reserve+ 1
Federal Reserve Chair Jerome Powell said Wednesday volatility in stock and bond markets has been high in the face of President Donald Trump's rapid changes in trade policy, but added they are functioning in an orderly manner.
"Markets are struggling with a lot of uncertainty and that means volatility. Having said that, markets are functioning. Markets are doing what they're supposed to do. They're orderly and functioning just about as you would expect them to function," he told the Economic Club of Chicago.
"Clearly there's some delevering going on among hedge funds in levered trades, but it's also markets processing historic unique developments." (See: MNI INTERVIEW: US Bond Selloff A 'Stern Warning' To Fed -Stein)
When asked if Fed stands ready to extend credit to foreign official institutions via dollar swap lines as it has in the past, Powell said: “Absolutely we do.”
