Fed's balancing; Curbing Inflation Without Stock Market Crash

- Publication Date: 02/02/2024

Executive Summary

The Federal Reserve, as the central bank of the United States, has a dual mandate: to foster economic conditions that achieve both stable prices and maximum sustainable employment. However, the task of controlling inflation—especially in a volatile economic environment—without causing a downturn in the stock market is a delicate balancing act. This article explores the strategies employed by the Fed to manage this balance, focusing on the role of interest rates.

Analysis of long term VIX index and market volatility

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