Question: 1. Why does the stock market often respond after a FOMC meeting even when there are no announced changes in the target Fed funds rate?

1. Why does the stock market often respond after a FOMC meeting even when there are no announced changes in the target Fed funds rate? Do the bonds market respond also? Would you expect them to respond similarly? Why or why not?

2. a) Why is it that to the ordinary person inflation feels higher than the CPI indicates? b) Why do most Americans say that the country is not heading in the right direction? Can the Fed fix this?

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