The Markets are Fighting the Fed and Vice Versa

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The Markets are Fighting the Fed and Vice Versa
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Fed officials are talking as if they are determined to bring down inflation even if it means a recession. Investors are not yet convinced.

Lately, however, that’s all anyone seems to be doing.

The Fed is attempting to rein in inflation by raising interest rates and allowing its balance sheet to shrink. In theory, this should drive asset prices and raising rates on home loans, tightening financial conditions for businesses and households.. The S&P 500 rallied 17.2 percent in the 41 days through March 17. U.S.

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