It is a belief that has been firmly ingrained in the minds of investors for nearly three decades. It is the Fed ‘Put’, which is the expectation that the U.S. Federal Reserve will intervene aggressively to support stock prices during any sustained correction or market crisis. But following nearly three decades of pursuing this monetary policy approach, it is reasonable to question whether the days of the Fed ‘Put’ may now be over under the direction of new Fed leadership. If this is indeed the case, it is worthwhile to consider the potential implications for the stock market going forward.
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