Why the Fed should ignore the stock market

ARTICLE - Opinion from James B. Bullard and Charles M. Hokayem of the Federal Reserve Bank of St. Louis argue the Fed should not react to equity price developments because it would be 'similar to looking in a mirror', saying that such a policy would only interfere with the Fed's job of stabilizing inflation and output.

Why the Fed should ignore the stock market

During the 1990s, stock price movements were extraordinary. At the beginning of 1994, the Dow Jones Industrial Average (DJIA) was about 3

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