It used to be a time not very long ago when the U.S. Federal Reserve was lavishly pampering investment markets. And if they weren’t flooding the financial system with massive liquidity injections from their daily Treasury purchases, they were out talking seeming all the time about how much more they were willing to do for the markets the moment trading turned lower into the red. But it seems that a critically important change for investment markets may have finally come to pass. The Fed is no longer providing stimulus to financial markets. Instead, they have finally raised interest rates for the first time since the financial crisis. Some contend the Fed will eventually return to their pampering ways, as the market turns more sour, while others contend that market neglect may finally be on the minds of Fed policy makers. Who’s right? And what are the implications for financial markets?
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