The Fed's Response to Inflation

In 1946, the market fell 28%, yet financial conditions eased as real interest rates plummeted after a 20% spike in inflation. In 1973, investors were down more than 36%. The U.S. Federal Reserve waged an all-out war on inflation and raised the federal funds rate to more than 12%. That kind of feels a little similar to today. But the main difference between that and now is that the Fed has already tightened monetary policy and investors seem to have absorbed those shockwaves.