According to reports by PANews on X, there is a growing consensus that a change in the Federal Reserve Chair is unlikely to cause immediate chaos across the entire financial market. Instead, market participants are expected to focus more on the long-term monetary policy direction rather than short-term price fluctuations.
Simultaneous Sharp Declines Across Multiple Assets Are Limited as a Scenario
Considering the market reaction mechanisms, it is unlikely that different asset classes such as precious metals, technology stocks, and cryptocurrencies will all experience flash crash-like declines simultaneously. These assets are typically supported by different investor groups, and their responses to policy changes vary widely. The scenario of multiple assets collapsing in concert solely due to a change in the Federal Reserve Chair is being cautiously evaluated by market participants.
Markets Are Expected to Adjust Gradually
Historically, when there is a leadership change at a financial authority, markets tend not to fluctuate dramatically within 48 hours. Instead, they usually adjust prices gradually over several days to weeks. Investors tend to carefully interpret new policy signals under the new leadership, and a cautious approach has become a market culture rather than reacting immediately and excessively.
Given this context, a change in the Federal Reserve Chair could serve as an important turning point influencing long-term market expectations. However, it is unlikely to trigger short-term speculative chaos in the markets.
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The change of the Federal Reserve Chairman does not immediately cause market panic
According to reports by PANews on X, there is a growing consensus that a change in the Federal Reserve Chair is unlikely to cause immediate chaos across the entire financial market. Instead, market participants are expected to focus more on the long-term monetary policy direction rather than short-term price fluctuations.
Simultaneous Sharp Declines Across Multiple Assets Are Limited as a Scenario
Considering the market reaction mechanisms, it is unlikely that different asset classes such as precious metals, technology stocks, and cryptocurrencies will all experience flash crash-like declines simultaneously. These assets are typically supported by different investor groups, and their responses to policy changes vary widely. The scenario of multiple assets collapsing in concert solely due to a change in the Federal Reserve Chair is being cautiously evaluated by market participants.
Markets Are Expected to Adjust Gradually
Historically, when there is a leadership change at a financial authority, markets tend not to fluctuate dramatically within 48 hours. Instead, they usually adjust prices gradually over several days to weeks. Investors tend to carefully interpret new policy signals under the new leadership, and a cautious approach has become a market culture rather than reacting immediately and excessively.
Given this context, a change in the Federal Reserve Chair could serve as an important turning point influencing long-term market expectations. However, it is unlikely to trigger short-term speculative chaos in the markets.