đš Federal Reserve Officials Speak Out! đš
On the evening of September 30, Fedâs Collins reassured markets: even if the U.S. government shuts down, the Federal Reserve will keep running at full strength â printing money if needed, managing banks if needed, and setting interest rates if needed.
đ This message is like a "stabilizing pill" for the market: the heart of the financial system is still beating.
đ Looking deeper, two key takeaways emerge:
1ïžâŁ Fed Independence: Its funding doesnât rely on government budgets. The Fed earns from bond operations and services to financial institutions â meaning it can keep functioning even if Washington stalls.
2ïžâŁ Shutdown Side Effects: Economic data delays and paused regulations make decision-making harder. The Fed may need to adjust rates while âdriving blindfoldedâ â adding real risk.
âïž In short, the Fedâs words reflect both confidence and helplessness: the system wonât stop, but the uncertainty caused by political deadlock will be carried by the entire market.
