The Next Big Letdown for Stocks

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Wolf Richter,

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Walls Street is hoping for rate cuts and a new bout of QE, expecting that a recession will force the Fed’s hand. Stocks have surged for three months based on that hope for a recession, rate cuts, and QE. But what if the Fed stopped tightening too soon, and instead of a recession, we’ll get slightly lower economic growth, but with some added inflation? (10 minutes)

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