The Federal Reserve has taken a hands-off approach during recent crises despite having enacted record interest-rate hikes. This signals lower odds of Fed crisis intervention going forward, shifting more risk onto markets and other policy tools and potentially affecting liquidity and investor sentiment in stressed scenarios.
The Federal Reserve has taken a hands-off approach during recent crises despite having enacted record interest-rate hikes. This signals lower odds of Fed crisis intervention going forward, shifting more risk onto markets and other policy tools and potentially affecting liquidity and investor sentiment in stressed scenarios.
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neutral
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