A year ago today, the Fed pulled out all the stops to save the market

The Fed turned the market on its head on this very day last year

Powell

Amid the virus crisis a year ago, the S&P 500 bottomed on 23 March 2020 before producing a remarkable rebound all the way until now. Since then, the index is up by 76% as of the close yesterday as compared to the close at the bottom last year.Invest in yourself. See our forex education hub.

The Fed came to the rescue (↑) with an unprecedented wave of support measures like we’ve never seen before and that has flipped sentiment completely alongside their other stimulus measures at the time to prevent a further collapse.

As much as there is concern about the recent tantrum on reflation (even before the taper) and fears that tax hikes may scupper high-flying stocks, this is a reminder of the power of easy money and what the Fed can do to relieve the pain.

Powell

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