The Fed Is in Wait-and-See Mode. Investors Want Reassurance It Will Act If Needed
- Investors seek reassurance Fed is ready to support the economy
- Fed wants more clarity on inflation, Trump policies before cut
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Jerome Powell faces a tricky task this week of both assuring investors the economy remains on solid footing while also conveying policymakers stand ready to step in if necessary.
Even as the Federal Reserve chair has touted US resilience, uneasiness sparked by President Donald Trump’s rapidly escalating trade war has sent stocks tumbling over the past month. Bond yields are down, too, as is consumer sentiment as worries about the economic outlook mount.