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Powell Comments Fan Flames of Investor 'Uncertainty'

NASDAQ’s daily decline accelerates to a -4.3% low, during and after Powell’s address this afternoon at the Economic Club of Chicago.

🎯 Key Reasons for the Sell-Off

1. Powell Confirmed No Rate Cuts Anytime Soon

• Markets had been pricing in at least one rate cut by July.

• Powell shut that down — emphasizing “patience,” “uncertainty,” and the need to wait and see.

  👉 No monetary cushion if things deteriorate.

  🧠 Translation: “You’re on your own.”

2. Tariffs = Persistent Inflation = Policy Trap

• This point should concern equity AND bond investors.

  • Powell admitted tariffs are larger than expected and likely to push up prices.

  • But he didn’t say the Fed would counteract this inflation — just that they’re watching.

• That’s the definition of a policy bind: can’t ease, can’t tighten, so markets have to price in higher inflation without Fed support.

🧠 Translation: “Stagflation-like risk just went up.”