The Fed’s stock market influence, like inflation pressure, continues to fade

Mar 30, 2024
the-fed’s-stock-market-influence,-like-inflation-pressure,-continues-to-fade

The Federal Reserve has pulled off one of the biggest monetary policy surprises in decades, thanks in part to the lessons it learned from an earlier communications error, and it looks set to deliver on perhaps its most difficult challenge.ย 

But while some would think this refers to the central bank’s chances of executing a so-called soft landing for the world’s biggest economy, where inflation is tamed without triggering a recession, the Fed’s greater accomplishment is actually even more difficult.

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