If you’re an active trader, then you’ll already know that the S&P 500 hit a record high Monday. In fact, it has been ripping higher since the March 2020 low.
But have you ever wondered why?
When the stock market finds itself in trouble, the Federal Reserve steps in and floods the system with liquidity or easy money. This has been a page in the Fed’s playbook since the 2008 financial crisis.
But what would it take for the Fed to stop aggressively buying bonds and actually raise short-term interest rates. Well, it starts with a dual mandate…