Fed's 'bearish' door slams as market pain gives way in inflation fight

in a To some extent, in fact, the main thrust of Fed policy is to force such a reassessment. Far from the Fed being “bearish” to establish a floor for financial markets, one way the central bank can slow demand and inflation is through the wealth effect—stored in real estate, stocks and The impact of purchasing power in other assets on actual spending, or in this case, the loss of wealth that could cause some households to retreat. Overall financial conditions remain below their historical averages, or slightly more “accommodative,” according to an index maintained by the Chicago Fed, suggesting Fed officials may still have what many call “work to do.”