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Stephanie Pomboy: Count On A LOT Of Pain Before The Fed Pivots

Wealthion - Be Financially Resilient

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The Impact of Fed Policy on the Economy and Financial Markets

This chapter explores the effects of Federal Reserve policy on the economy and financial markets, referencing the 2007-2009 period and underperformance of financial assets after a Fed pivot. It discusses the lag effect of Fed policy on the economy and the lasting scars from the decline, as well as the impact of losing money on leverage on borrowing and spending. The chapter also touches on the counterbalancing effects of fiscal and monetary policy on inflation and potential political dynamics in Washington impacting future fiscal stimulus.

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