Fed Chair Powell Warns of Continued Volatility Amid Hedge Fund Deleveraging in U.S. Treasury Market

Federal Reserve Chair Jerome Powell addressed the current conditions in the U.S. Treasury market, describing the situation as involving historically unique developments and ongoing uncertainty. Powell indicated that it is premature to draw definitive conclusions about the market's trajectory at this stage. He highlighted that some deleveraging by hedge funds is occurring, contributing to the market dynamics. Powell emphasized that investors should expect continued volatility in the markets as these factors play out.