Markets Stay Orderly Despite Political Uncertainty

Federal Reserve Chair Jerome Powell reassured the public on Wednesday that despite the ongoing volatility linked to United States President Donald Trump's tariff policy, the markets are operating in an "orderly" and "functioning" manner. Speaking at the Economic Club of Chicago, Powell acknowledged that such fluctuations are to be expected under the current circumstances.

Investment Climate Could Deteriorate

However, Powell warned that if the present uncertainty continues, it could render investing less attractive for traders. He emphasized the need for stability to maintain investor confidence in the long term.

Warning on US Federal Debt

Addressing other concerns, Powell highlighted that the US federal debt is on "an unsustainable path, though not at an unsustainable level." He pointed out that domestic discretionary spending is relatively "small" and not directly tied to the escalating government debt.

Banking System's Resilience

On a positive note, Powell affirmed that the banking system remains "well capitalized" and "resilient," capable of withstanding the current economic pressures.