How Fed Decisions Impact the Stock Market
The role of the Federal Reserve is to help the U.S. economy operate effectively.
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…