>But... but... they don't *want* a higher stock market
Now they do. Sorta. Just not too much higher. Quoting from the last FOMC release (Apr 18) <http://www.federalreserve.gov/boarddocs/press/general/2001/20010418/default.htm>:
>Nonetheless, capital investment has continued to soften and the
>persistent erosion in current and expected profitability, in
>combination with rising uncertainty about the business outlook,
>seems poised to dampen capital spending going forward. This
>potential restraint, together with the possible effects of earlier
>reductions in equity wealth on consumption and the risk of slower
>growth abroad, threatens to keep the pace of economic activity
>unacceptably weak. As a consequence, the Committee agreed that an
>adjustment in the stance of policy is warranted during this extended
>intermeeting period.
Doug