NEW data shows not only that the Federal Reserve “leaks” or informally guides the market about its intentions, but also that its intentions are, on the whole, staggeringly positive for stock markets.
The picture that emerges from a recently presented study of market returns around Federal Reserve board meetings is of an institution reliant on back-channel communications and one running a policy of “Heads you win/tails I lose” for the stock market. That’s not just a transparency problem, it is a policy problem.
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