Powell is adding to market volatility

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Market volatility has been three times greater during press conferences held by Powell than those held by his predecessors, Bernanke and Yellen

Not only are Powell’s conferences more volatile, they tend to reverse the market’s initial reactions to the Fed statements.

This reversal is “systematically linked” to the words used in Powell’s speeches. Increased macro volatility is not likely an explanatory factor, say the researchers. Trading around Fed statements, always a difficult business, is more unpredictable than ever.

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