Differing Powell and Yellen Messages Were a Lot for the Stock Market to Digest
- ‘Astounding’ that they gave contradictory messages: Chiavarone
- S&P 500 erased an earlier gain to finish the session down 1.7%
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Traders are accustomed to a bumpy ride whenever Jerome Powell speaks. But when Powell speaks at the same time Janet Yellen is talking to Congress about the health of the banking sector, the turbulence can get overwhelming.
That’s what happened Wednesday afternoon as the back half of the Federal Reserve chairman’s press conference overlapped with the Treasury Secretary’s appearance before a Senate subcommittee. The S&P 500 fell, rose, went back to unchanged then plunged again as traders tried to synthesize comments on the health of the economy, rates trajectory, the state of banks and how far the government will go to protect depositors.