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Fed's Cook: April market volatility will help hone financial stability assessment

1. Tariffs announced by Trump caused financial market volatility but no severe dysfunction. 2. The Fed highlights ongoing assessment of financial system stability amid market changes.

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FAQ

Why Neutral?

Recent tariff announcements usually create short-term volatility but not long-term trends. Historical instances, like tariffs in 2018, led to brief sell-offs but recovery was swift.

How important is it?

While tariffs can impact sectors, overall sentiment remains stable. Potential shifts depend on further policy changes or economic data.

Why Short Term?

Market reactions to tariff news tend to be immediate but stabilize quickly. Similar past events showed transient impacts on S&P 500 before returning to baseline.

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