And, The Stock Market…

Summary

• During the Great Recession, the Fed shifted focus to quantitative easing to stimulate the stock market and boost consumer wealth, leading to economic growth.
• Ben Bernanke initiated, and subsequent chairs continued, policies that influenced the Fed’s securities portfolio, with Jay Powell overseeing both easing and tightening phases.
• The Fed’s actions, particularly post-COVID-19, instilled investor trust, resulting in significant stock market gains, especially from mid-2022 to late 2024.
• Despite initial optimism in 2025, trade tensions and slowing growth under the second Trump administration have negatively impacted major stock indexes.

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