Fed’s Post-Meeting Comments Could Trigger Market Volatility, Especially in Bonds and Risk Assets
Federal Reserve Chair Jerome Powell's upcoming press conference holds significant sway over financial markets, particularly Treasury yields and risk asset prices. New research from the Federal Reserve Bank of San Francisco underscores how unexpected remarks during these sessions can send shockwaves through markets.
The study reveals that press conferences—more than official statements—pack the strongest punch, moving both bonds and equities. With the Fed's next policy decision looming, traders are bracing for potential surprises that could reshape inflation expectations and asset valuations.
Cryptocurrencies, often sensitive to macroeconomic shifts, may experience amplified volatility. While the research didn't specifically analyze digital assets, the correlation between Fed policy surprises and risk appetite suggests crypto markets won't emerge unscathed.
