(Bloomberg) — Time and again, Jerome Powell has made it clear. Financial conditions, the Federal Reserve’s key lever for cooling the US economy, are tight.
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After an $11 trillion rally in US equities since late October — and the sudden revival of meme-stock fever — many on Wall Street think he’s dead wrong. Not only are popular gauges of the investing climate famously loose — some are looser than before the Fed kicked off its historic monetary-tightening campaign more than two years ago.
Rather than help the Fed chair on his legacy-shaping mission to vanquish the inflation threat at its core, the objection goes, the market frenzy across risky assets is working against his policy goals by encouraging…
