The Stock Market: Another Week, Another Gain

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This past week the stock market rose for the fourth week in a row.

The rise was not much, but, it was a rise.

Why is this important?

Well, on March 16, 2022, the Federal Reserve announced that it was raising its policy rate of interest. The policy range was now going to be 25 basis points higher than it had been, raising the range to 25 basis points to 50 basis points.

The effective Federal Funds rate jumped from 0.08 percent to 0.33 percent.

And, the debate over the Fed’s monetary policy moved to how many more increases will there be in 2022…five or six…and…and how large might the addition increases be…25 basis points or 50 basis points.

Then there was also the discussion about how the Fed was going to reduce the size of its securities portfolio.

The stock market rose in the week before the March 16 meeting of the Federal Open Market Committee and continued to rise in the days just following the meeting.

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