Powell Says Fed to Respond to Market Volatility If Goals Are at Risk

The transcript discusses the Federal Reserve's role in financial stability, emphasizing that while financial stability is part of the Fed's responsibilities, it is not an official mandate. The Fed's primary mandate is maximum employment and stable prices. The transcript also clarifies that financial stability refers to the financial system's ability to support economic activity, not stock market stability. It addresses the impact of broader financial conditions on the macro economy and the Fed's dual mandate.

What is meant by the 'Powell put' in the context of market conditions?

In what way do financial conditions impact the macro economy according to the speaker?