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Former Fed Trader: Rate Hikes Will Crash Markets | Joseph Wang
Forward Guidance
The Fed's Fear of a Stock Market Crash
The Federal Reserve is trying to stimulate the economy. If they crash their equity markets, it's going to have a lot of people are suddenly going to feel poor. They're going to spend less, less demand. The only way to curb inflation is to crash the equity marketCrash as in a slow orderly decline of 30% over a year and a half,. not 30% in a month.
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