Do Fed Comments Cause Too Much Volatility in the Stock Market?

A growing body of research shows how comments from Federal Reserve members move financial markets. Longterm transparency efforts from the Fed have resulted in more communication with the public today than ever before. But some argue that the Fed’s communication and forecasting framework may be contributing to undue market volatility. When it comes to “Fed speak,” how much is too much?

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Edited by: Kevin Heinz
Graphics: Jason Reginato and Christina Lopoco
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Additional Footage: Getty Images, U.S. Federal Reserve, C-Span

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Fedspeak: Does The Federal Reserve Talk Too Much?

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One thought on “Do Fed Comments Cause Too Much Volatility in the Stock Market?

  1. Years ago a reaches the conclusion that was an strategy to not openly disclose market moves!
    Uncertainty has been the WORD out of the Jerome Power mouth! I’m surprised that CNBC is speaking out about this, probably is also part of the strategy!

  2. Talk too much and destroy their own credibility. When in panic it’s always blah blah blah.

  3. What more can the Fed do with keeping inflation under control?…Dealing with high inflation is hurting the future of Americans and their families.

  4. The only American who won’t acknowledge this Administration’s failed economic policies is Joe Biden. “Shrink-flation’ is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that

    1. I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown

    2. A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She’s helped grow my reserve notwithstanding inflation, from $275k to $850k

    3. This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I’m in dire need of proper portfolio allocation

    4. She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing

  5. Fed speak is like music to the ear. It can be cheerful or melancholy, but always moving.

  6. what can I do? I am 65 years old at the verge of retirement. My portfoliio of $450k is down to $192k, How can I profit from the present market.

    1. The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.

    2. Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $325k in net profit across high dividend yield stocks, ETF and bonds in few months.

    3. That’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

    4. Could you kindly leave your investment advisor’s contact information here? I absolutely must have one.

    5. Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.

  7. This seems like the worst period.
    Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!..

    1. Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to harriet alice

    2. I agree just reached my goal of $500k yearly trade earnings. Setting realistic goals is an essential part of trading

    3. Please educate me, i’m willing to make consultations to improve my situation,

    4. She’s recognized as ‘Mrs alice harriet. One of the finest portfolio managers in the field. She’s widely recognized; you should take a look at her work.

  8. The ETF and stock markets are still quite volatile, just like the property market. My $670K portfolio is down by 15% even as the stock market is on the rise lately. what’s the best way to correct my portfolio?

    1. Many people are still getting fantastic returns on their investments during this time. Simply maintain a strong sense of reality or ask for professional assistance.

    2. I made more than $320K during the bear market, demonstrating that there are more aspects of the market than the average individual is aware of. Having a Financial consultant is now the best line of action, especially for those who are close to retiring.

    3. I made more than $320K during the bear market, demonstrating that there are more aspects of the market than the average individual is aware of. Having a Financial consultant is now the best line of action, especially for those who are close to retiring.

    4. Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.

    5. This is definitely considerable! think you could suggest any professional/advisors I can connect with? I’m in dire need of proper portfolio allocation

  9. Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I’m still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.

    1. Very possible! Particularly in the current market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

    2. No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise fromm early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024

    3. This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?

    4. Credits goes to Marisol Cordova, one of the finest portfolio managers in the field. She’s widely recognized; you should take a look at her work.

    5. Thanks for the advice. The search for your coach was simple. I investigated her well before using her services.

  10. The worst part is not only the American Economics that rattles when the federal bank says something but also the central banks of other nations who anticipate their every move to protect their respective economies. So much power has been given to the US Federal Reserve but I can’t blame them, they need to be frugal about making statements.

  11. The recent stock market rally has left investors questioning whether it’s the end of the bear market or a sign of volatility to come, especially with traditional indicators like the inverted yield curve signaling caution. In such a climate, pivoting to the dynamic world of cryptocurrencies could be a wise move. Despite a potentially bearish stock market, the crypto market remains a hub of innovation and opportunity. Amidst this the insights of a knowledgeable guide like Whitney Eston can be crucial. Her expertise in navigating the nuances of cryptocurrency investments could be the key to understanding and making the most of these emerging financial trends.

    1. I appreciate the professionalism and dedication of the team behind Whitney’s trade signal service.

    2. A better way is to get proper guide!!!! The most important thing is the technicality and Whitney Eston keeps proven herself.

    3. Building a good investment portfolio is more complex so I would recommend you seek Whitney support.

  12. Non farm report 😞😞 was Very BAD. report SHOW THAT USA ECONOMY IS GOING TO HELL TO HARD RECESSION LANDING. ON MONDAY WE WILL SEE A BIG DROPPING IN S P. 2d cutting WILL BE MAYBE AFTER 2D QUARTER OF ….2025!! 😢😢😢 PREPARE FOR MARKET CORRECTION ON MONDAY. forget about rally BE FRIENDS WITH ELEMENTARY LOGIC

  13. Yup they are like a soap opera lol…even Congress …all they do is talk and get nothing done..next episode….things get worse…

  14. I think the stock market will do well in 2024, so I’m thinking of putting $220,000 into stocks for my retirement. Any advice on doing this safely? Also, any important tips for the current financial situation?

    1. Yes, truly, investing in the market, even if it’s just the S&P 500, can keep up with inflation, because the growth rate of stocks will always exceed the inflation rate. But if you don’t have the courage, you could just invest with a financial advisor, which even has greater return on investments, while securing your investment against losses.

    2. Keeping money in the bank is like paying banks and the Govemment. Here’s how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!

    3. Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don’t mind, how do I get in touch with them?

    4. ”Rachel Sarah Parrish” highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    5. Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I’m really grateful for your guidance

  15. Must be nice working for the fed. Buy your stocks, make some promising comments, sell your stock. Make some discouraging comments, buy some stock. 😂

    Time for me to make some new friends 😂

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