The Fed's Attention to the Stock Market

Dylan asks, will the Fed weigh equity returns year to date when determining how fast to tighten monetary policy? George: This is a major pillar of monetary policy. It's through the stock portfolios of the American public. If your stock portfolio is smaller, you'll have less money to buy stuff. That's less than man; that's less inflation. Joseph: The market is fighting the Fed and they're going to lose so badly.