Let's say a recession happens, and it is really bad. So bad that the Fed feels like they have to cut interest rates close to zero again to get out of it.
How would the market react? We would have an accommodative FED again, but we would have real risk of hyper inflation. Would the markets go on a crazy ride up and then crash terribly?. Would they just go straight down?
Curious what people think could happen, because I see a scenario where the recession is bad enough that the Fed feels like they will have to cut rates again even when inflation is at a 40 year high.
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