Stock Market Slump Offers Potential Cure To Stubbornly High U.S. Inflation

2025-03-22 05:20:00 ET

Summary

• Continued spending by the wealthiest US consumers has kept inflation relatively heated, frustrating the Fed's efforts to slow price increases, but the recent equity market slide could provide a long-sought remedy.
• The S&P 500 in mid-March fell more than 10% from its all-time high reached Feb. 19, a market drop likely hurting the highest-earning households.
• While stock market performance may not be a true reflection of the state of the economy, slumping equities weigh on sentiment and confidence.

Continued spending by the wealthiest US consumers has kept inflation relatively heated, frustrating the Federal Reserve's efforts to slow price increases, but the recent equity market slide could provide a long-sought remedy....

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