July 27, 2021

How Fed Decisions Impact the Stock Market

The role of the Federal Reserve is to help the U.S. economy operate effectively.

a large building: Federal Reserve building

© (Getty Images)
Federal Reserve building

The Fed has a lot of power to influence the economy, and this indirectly impacts how stocks move. While the stock market is not the economy, it can be seen as a reflection of how confident consumers are about the strength of the economy now and in the future.

Additionally, the stock market is a helpful indicator of economic change, well-being and growth. Investors should keep a close ear to news coming out of the U.S. central bank as a gauge to where the markets might be headed next.

If you’re interested in the role the Fed plays in markets, read on for answers to these questions:

  • What is the Federal Reserve?
  • How do the markets respond to Fed actions?
  • How do interest rates impact market sectors?
  • How can investors respond to Fed…

Read full article here: www.msn.com