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The Flea on the Tail of the Dog

IBKR Podcasts

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Is the Fed Set Up to Keep Equity Markets Propped?

I think people, you know, misunderstand the Fed put as being something that the Fed's going to step in if stocks sink. I'd like your opinion on this. Mine is that the Fed put has nothing to do with stocks. Stocks are collateral. But basically it's not the Fed's not set up to keep equity markets propped. It's basically this soft landing approach to going lower over time instead of over the clip all at once.

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