Federal Reserve Chair Jerome Powell noted on Wednesday that markets are "orderly" and "functioning," insisting that the ongoing volatility linked to United States President Donald Trump's tariff policy is expected in such circumstances.

Still, the present uncertainty, if it persists, could make investing unattractive for traders, Powell remarked at the Economic Club of Chicago.

Speaking about other consequences of the duties, Powell warned that the US federal debt is on "an unsustainable path, though not at an unsustainable level." He added that domestic discretionary spending is "small" and disconnected from the government debt. Powell also stressed that the banking system is "well capitalized" and "resilient."