Odaily News Federal Reserve Chairman Jerome Powell said on Wednesday that market expectations that the Fed would intervene to calm volatility may be misplaced. "My answer is no, but I'll explain," Fed Chairman Jerome Powell said when asked if the Fed would intervene in response to the sharp drop in the stock market. "I think the market is digesting what's going on, the market is dealing with a lot of uncertainty, and that means volatility," Powell said while attending a conference in Chicago. Powell said it was understandable that the market would have difficulty given that U.S. President Trump's tariff regime is undergoing a big change. He also explained that it is difficult to know in real time what is causing trouble. "I've had a lot of experience with major market fluctuations, such as the bond market, and often people will form an idea and look back two months later and find that the original view was completely wrong. So it's premature to tell what's happening in the market now," Powell said. For now, he noted that the market's turmoil is partly due to hedge funds reducing leverage or debt, adding: "In the short term, you may continue to see volatility in the market."