Wagging the Dog: Why the Fed Fears Wall Street

Wagging the Dog: Why the Fed Fears Wall Street
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The stock market has long been the mistress in the marriage between the Federal Reserve and the economy.

While central bank policy is supposed to be focused solely on maintaining full employment and price stability, boosting the equity market has been a furtive goal of monetary policy—generally not part of Open Market Committee discussions but never far from mind.

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