Paulsen Perspectives

Paulsen Perspectives

Monetary Policy is Starting to Help the Stock Market

While the economy is being pressured by ongoing Fed tightening and tariff risks, investors should consider whether to exit this bull market just as the Fed may finally be delivering the punch bowl?

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Jim Paulsen
Aug 07, 2025
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The Federal Reserve could bring considerably more support to both the stock market and the economy should they finally decide to ease the Federal Funds Rate. However, as the charts below demonstrate, monetary policy is already becoming somewhat of a tailwind for stock investors. Hopefully, this will become even more pronounced in the months ahead.

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