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Stocks Trading on Fumes Probably Aren’t Keeping the Fed Awake

  • S&P 500 falls into correction right before Fed policy meeting
  • Economy, profits show no hurdle to Powell’s new hawkishness
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Goldman: Risk of a 'Growth Shock' to Equities Increasing

Don’t count on the Federal Reserve to ride to the stock market’s rescue so quickly this time.

Ultra-loose financial conditions, surging inflation and sky-high valuations all mean there’s little chance that Fed officials will step in to stop the bleeding, a growing chorus of Wall Street prognosticators say. After all, equities just doubled in three years, buoyed by the Fed’s monetary largess and its willingness to bail out investors whenever times got tough.