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Why the stock market doesn’t seem to mind that the Fed is scaling back stimulus

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Federal Reserve Chair Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill, Washington, December 1, 2020.

Al Drago | Pool | Reuters

The Federal Reserve managed to soothe markets with its view that the economy would improve and inflationary pressures would ease, even as it took the first major step away from the easing policy it put in place to fight the pandemic.

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