One Sentence in the Fed Meeting Minutes Is Nightmare Fuel for Fed Chair Kevin Warsh and the Stock Market
Federal Open Market Committee (FOMC) policymakers just acknowledged that Fed Chair Kevin Warsh's worst-case scenario for inflation is a genuine possibility.
Overview
Outsize stock market returns under President Donald Trump have become the norm. Since early June, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have blasted to record highs.
But things aren't nearly as peachy for the U.S. economy and Wall Street as the broad-market indexes suggest. Although the evolution of artificial intelligence (AI) is successfully lifting the tide on Wall Street, elevated inflation, primarily driven by two of Donald Trump's policies -- tariffs and the Iran war -- threatens to pull the rug out from beneath investors at any moment.
Fed Chair Kevin Warsh and his FOMC peers face some challenging decisions on inflation. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.