You’re right, the Fed is supposed to help stabilize the market. But their current position of “never let it crash” is unprecedented and dangerous. It’s not abo

You’re right, the Fed is supposed to help stabilize the market. But their current position of “never let it crash” is unprecedented and dangerous. It’s not about a “feeling” and it’s not a “contractionary approach”. My concern is the Fed has taken the position that the stock market must always go up, no matter what. It’s like saying we must never allow wildfires... well eventually something will happen outside of your control and now the entire west coast is burning and there’s nothing you can do to stop it. If you just let the smaller fires burn when they wanted/needed to, we wouldn’t be in that situation. You seem to be drawing a hard black and white line, that either the Fed does nothing or they do everything imaginable. As always, there is a middle ground... let the market make its corrections and if something big happens then step in and help ease the pain. The problem with the “do anything and everything to make sure the market NEVER goes down” approach is at some point it will. At some point something will happen that scares investors and the market will drop faster than the Fed can print money. And the more out of touch the markets are, the harder it will drop and the more painful it will be. But even if the eventual crash never comes, if the Fed is willing to print trillions of dollars every year to keep the stock market up, is it really even a stock market? At that point it’s just a high-interest savings account for the ultra-rich, paid for by inflation (which hurts everyone who doesn’t own stocks). And the way that ends is the rich get richer until we end up with an oligarchy. It’s dangerous and unprecedented for the Fed to say they will keep printing unlimited amounts of money [2] in order to make sure the markets never go down. Their job is to prevent a depression, not prevent Wall Street from losing even a single dollar. [1] https://tradingeconomics.com/united-states/interest-rate https://tradingeconomics.com/united-states/interest-rate [2] https://www.marketwatch.com/story/fed-announces-unlimited-qe-and-sets-up-several-new-lending-programs-2020-03-23 https://www.marketwatch.com/story/fed-announces-unlimited-qe...