Two Fed moves have boosted stocks, but they could come with a price


The stock market has picked up 2020 pretty much where 2019 left off, thanks in large part to two key Federal Reserve moves that could keep the rally going, at least until something goes wrong.

Amid an already strong backdrop for Wall Street, the Fed issued two directives right around the same time in October — one, an open commitment to providing liquidity in the short-term borrowing market for banks, the other a pledge not to increase interest rates until inflation rose substantially higher.

Taken together, the moves have been seen as stimulus that while stealthier than the measures taken to pull the economy out of the financial crisis, nevertheless represent important backing that has…


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