Summary
- Professor Nouriel Roubini stated that the Fed will not immediately resolve the market instability caused by Trump's trade war.
- Traders who expected intervention from the Fed might be disappointed, and the market should not rely on the Fed.
- The Powell put option is likely to intervene to stabilize market volatility after Trump eases his actions.
Nouriel Roubini, a professor at New York University in the United States, famous for predicting the 2008 global financial crisis, recently stated in an interview with Bloomberg that "the Federal Reserve (Fed) may not save the market from Trump's trade war."
He said, "Traders who expected quick intervention from the Fed might be disappointed," adding, "The market should not rely on the Fed to resolve the financial market instability caused by Trump's international trade tariffs."
He continued, "Of course, there is a game of chicken between the Trump put option and the Powell put option. However, Powell's strike price is expected to be lower than Trump's," explaining, "In other words, the Powell put option will wait until Trump blinks."
Furthermore, he added, "In other words, Powell is likely to intervene to stabilize market volatility after Trump eases his actions."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
