The Fed ‘Put’ Applies to Both the Economy and Markets

The stock market isn’t the economy, but it is sufficiently connected with the economy that it can’t be ignored by the Federal Reserve. Eventually, central bankers must respond to protracted turmoil in financial markets. That means it will be very difficult – if not impossible – to differentiate between a “Fed put” on the economy versus on the stock market. Rather than complaining about the “Fed put,” market participants should embrace it – or at least not bet against it.

Continued at Bloomberg Opinion…