Excerpt from Business Insider quoting DataTrek’s Nick Colas:
What separates the current market decline from others is that the Fed likely welcomes the ongoing stock sell-off as a tool to fight inflation, according to DataTrek.
“Lower stock prices tell companies to stop hiring so aggressively and feeding wage inflation. They also create a reverse wealth effect, which should curtail consumer spending. The Fed also knows that the S&P 500 is still 15% above its February 2020 pre-pandemic peak of 3,386. Long term holders of US equities still have reasonable gains,” DataTrek co-founder Nicholas Colas said” ….
Read the full article here on Business Insider!