Market Volatility Increases Amid Fed Leadership Concerns

According to PANews, the Dow Jones and Nasdaq indices have both fallen by over 2% this week, while the S&P 500 has seen a 1.5% decline. This downturn is attributed to investor disappointment with U.S. Federal Reserve Chair Jerome Powell's stance on central bank support for the market. Many investors are adopting a wait-and-see approach regarding tariff negotiations before making long-term bets. Traders are closely monitoring discussions in specific countries to gain insights into potential tariff developments. Several Federal Reserve officials are scheduled to speak next week, which could influence market dynamics. Key events to watch include an interview with Chicago Fed President Austan Goolsbee, a 2025 FOMC voting member, on CNBC at 20:30 UTC+8 on Monday. On Tuesday, Fed Vice Chair Jefferson will speak at the Economic Liquidity Summit at 21:00 UTC+8, followed by an interview with European Central Bank President Christine Lagarde on CNBC at 22:00 UTC+8. Philadelphia Fed President Patrick Harker, a 2026 FOMC voting member, will also speak at the summit at 21:30 UTC+8. On Wednesday, Minneapolis Fed President Neel Kashkari, a 2026 FOMC voting member, will deliver a speech at 02:00 UTC+8. Later that day, Goolsbee will give an opening address at an event at 21:00 UTC+8, followed by St. Louis Fed President James Bullard and Fed Governor Christopher Waller at 21:30 UTC+8. The Federal Reserve's Beige Book on economic conditions will be released at 02:00 UTC+8 on Thursday, along with the weekly U.S. initial jobless claims data at 20:30 UTC+8. On Friday, Kashkari will speak again at 05:00 UTC+8, and the final April University of Michigan Consumer Sentiment Index and one-year inflation expectations will be released at 22:00 UTC+8. U.S. National Economic Council Director Kevin Hassett has indicated that President Donald Trump is exploring the possibility of removing Powell from his position. Hassett suggested that the Fed's actions under Powell's leadership may have political biases, favoring the Democratic Party through interest rate adjustments. Efforts by the Trump administration to dismiss Powell could further destabilize the market. Krishna Guha, Vice Chairman of Wall Street advisory firm Evercore ISI, warned that a clear threat to the Fed's independence could exacerbate market pressures and increase the risk of stagflation, significantly raising tail risks.