(Bloomberg) — Traders are used to experiencing a volatile market whenever Jerome Powell speaks. However, when Powell speaks at the same time as Janet Yellen, who is discussing the health of the banking sector with Congress, the turbulence can become overwhelming.
Most Read from Bloomberg
On Wednesday afternoon, this is precisely what happened as the latter half of the Federal Reserve chairman’s press conference coincided with the Treasury Secretary’s appearance before a Senate subcommittee. The S&P 500 initially fell, then rose, returned to being unchanged, and finally plummeted again as traders attempted to synthesize comments on the economy’s health, rate trajectory, the state of banks, and how far the government would go to protect depositors.
It is rare for two individuals of such stature to speak at the same time, and it is even worse when they project messages that traders interpret as being in opposition. Shortly after hearing what they believed was Powell hinting at broader protection for depositors should financial stress spread, Yellen appeared on the feed to counter…
2023-03-22 18:56:36
Source from finance.yahoo.com