Fed Policy Looms Large for the 2026 Stock Market

Core Viewpoint - The anticipated appointment of a Trump-friendly Federal Reserve chair in May is expected to potentially boost stock prices, while also introducing significant risks [1] Group 1 - The new Federal Reserve chair could align monetary policy with pro-business and pro-growth strategies, which may lead to increased investor confidence and higher stock valuations [1] - The market reaction to the appointment could be volatile, as investors weigh the benefits of a favorable monetary policy against potential economic instability [1] - The influence of political considerations on the Federal Reserve's decisions may raise concerns about the independence of the central bank, impacting long-term market stability [1]