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The Fed's Targeting of the Stock Market
A paper recently showed a stock market decline better predicts the FOMC's behavior than any of the 38 macroeconomic indicators available in Bloomberg's database. They are targeting the stock market, but they're targeting the stockMarket through the credit bond. And if you see the move come unhinged, corporate volatility, that is going to get J Powell's attention much faster than the VIX rising because one feeds the other.