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Fed Policy Might Drive Big Moves
The Federal Reserve has been important to the stock market since its founding. In fact, the founding of the Federal Reserve was in part driven by a panic in the stock market. There were repeated panics in the market and the economy in the 1800s and early 1900s. Many hoped a central bank could reduce the number and severity of panics.
In the new tax reform bill, Congress quietly gave 121 million eligible Americans the chance to collect on "consumer bonuses" that max out at $3,700 for some people. This is available every year until 2025. And there are no income requirements to collect. Full details here...
At first, the Fed did not appear to be a cure to what ailed the economy and the stock. Early in its life, the nation was gripped by a depression. It was a "small d" depression in 1921 that would be surpassed by the "capital d" Great Depression that followed in that decade.
The Fed evolved during that time and in the future as we explain in our latest article and the policy makers have been involved in assessing their impact on the stock market since at least 1987.
In response to that stock market crash, a policy group was formed, and some believe that group is intended to prevent steep market declines.
But that group does not buy and sell stocks. There is no need for the Fed to directly own stocks to impact the market. And, the Fed is likely to have a big impact in the market in the coming weeks. We have specific ideas to possibly benefit from that impact.
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