U.S: The Fed Likes The Cooler Data, But So Does Wall Street

The market rally could reignite growth in the second half

The proliferating signs of a consumer-led slowdown and tame inflation are just what the doctor ordered--Dr. Greenspan, that is. But the Federal Reserve Chairman faces a tricky policy dilemma: Softer-looking data are refueling the markets, as investors express decreasing fear of further hikes in interest rates. Cooler growth may be the right prescription, but the Fed will have to guard against a worrisome side effect: The market rally could reignite economic growth later on.

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