The Steady Drip: How Does the Fed Affect the Stock Market? (Connecting the Dots: The Federal Open Market Committee, The Federal Reserve, The Stock Market, CNN, The U.S. Department of the Treasury, The Economic Club of Washington, The Carlyle Group & Soros Funding, All Networking)

How Does the Fed Affect the Stock Market? (Connecting the Dots: The Federal Open Market Committee, The Federal Reserve, The Stock Market, CNN, The U.S. Department of the Treasury, The Economic Club of Washington, The Carlyle Group & Soros Funding, All Networking)

Newsmax.com

By Andrea Billups | Wednesday, 01 July 2015 09:42 PM EDT

https://www.newsmax.com/finance/money-wire/federal-reserve-stock-market/2015/07/01/id/653163/

Federal Reserve actions to control the federal funds rate — the interest rate banks pay to borrow money from Federal Reserve banks — affect the stock market.
The trickle-down behavior of consumers and businesses as interest rates rise and fall affects companies and in turn, affects the stock market, according to Investopedia.

Higher interest rates make borrowing money more expensive, which may cause individuals and companies to limit spending. As a result, company revenues may fall, resulting in a hit to their stock prices. If a groundswell of companies see their stock values decline, the stock market itself also falls, Investopedia notes of the chain reaction.

According to the website About Money, the Federal Open Market Committee set up to review interest rates is perhaps the most important influencer on the stock market, its actions providing immediate consequences to those who are investing.
As interest rates are raised, business growth and consumer spending fall. Conversely, if the economy grows sluggish, a lowering of interest rates encourages spending, which fuels business growth. Those corresponding highs and lows affect growth of stock prices and influence investors in the market, About Money noted.
CNN noted that stock market investors have the right to be concerned about rate increases, citing historical trends. "Since World War II there have been 16 cycles during which the Fed has boosted interest rates. The risks are particularly acute when the Fed first raises rates," CNN reported in a March 9 Stocks Watch column by Matt Egan.
"During the six months before or after the first rate hike, the S&P 500 experienced a decline of 5 percent or more 13 times," Egan noted, citing a research report from Sam Stovall, chief investment strategist at S&P Capital IQ. "That means over 80 percent of the time, the stock market suffered a blow when the Fed raised rates."
CNN also noted that volatility would likely occur in the stock market as the result of an expected 2015 interest rate increase.
"Stocks are already considered expensive and many on Wall Street fear markets are overdue for a correction (when they drop 10 percent or more), which hasn't happened since 2011," CNN said in March 19 story by Patrick Gillespie.

Connecting the Dots:

Stanley Fischer is a member of the Federal Open Market Committee, the vice chairman for the Federal Reserve Board and a member of the Bretton Woods Committee.

Edwin M. Truman was an economist for the Federal Open Market Committee, a director of the international finance division for the Federal Reserve Board, an assistant secretary for the U.S. Department of the Treasury and is a member of the Bretton Woods Committee.

Alan S. Blinder was a vice chairman for the Federal Reserve Board, is a member of the Bretton Woods Committee and a friend of Ben S. Bernanke.

George Soros is a member of the Bretton Woods Committee and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

Ben S. Bernanke is a distinguished fellow at the Brookings Institution (think tank), a friend of Alan S. Blinder, was a chairman for the Federal Open Market Committee, a chairman for the Federal Reserve Board, and a chairman for the Council of Economic Advisers.

Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank) a senior counsel at Akin, Gump, Strauss, Hauer & Feld, LLP and was the president of the Economic Club of Washington.

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for Nasdaq Inc.

NASDAQ Stock Market Inc. is the former name of Nasdaq Inc.

Jerome H. Powell (Jay) is the Chairman for the Federal Reserve System and was a partner at the Carlyle Group.

Edward J. Mathias is a director at the Economic Club of Washington and a managing director at the Carlyle Group.

David M. Rubenstein is the president of the Economic Club of Washington a co-founder & co-CEO for the Carlyle Group, the co-chairman for the Brookings Institution (think tank), was a benefactor at the Aspen Institute (think tank) and (spent Thanksgiving with Joe Biden).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank) and the Aspen Institute (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Walter Isaacson is the president & CEO for the Aspen Institute (think tank) and was the chairman & CEO for CNN.

John J. Phelan Jr. was a lifetime trustee at the Aspen Institute (think tank) and a chairman & CEO for the New York Stock Exchange.

Henry A. Kissinger was a lifetime trustee at the Aspen Institute (think tank) and a member of the Bohemian Club.

Henrietta Holsman Fore is a trustee at the Aspen Institute (think tank) and a member of the Belizean Grove.

Belizean_Grove is the equivalent to the male-only social group, the Bohemian Club.

Merit E. Janow is a member of the Belizean Grove and was a director at the NASDAQ Stock Market Inc.

Deborah L. Wince-Smith is a member of the Belizean Grove, was a director at the NASDAQ Stock Market Inc. and a director at Nasdaq Inc.

NASDAQ Stock Market Inc. is the former name of Nasdaq Inc.

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for Nasdaq Inc.

Vernon E. Jordan Jr. is a senior counsel at Akin, Gump, Strauss, Hauer & Feld, LLP, an honorary trustee at the Brookings Institution (think tank) and was the president of the Economic Club of Washington.

Edward J. Mathias is a director at the Economic Club of Washington and a managing director at the Carlyle Group.

Jerome H. Powell (Jay) was a partner at the Carlyle Group and is the Chairman for the Federal Reserve System.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank) and the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Donna S. Morea was a trustee at the Committee for Economic Development and an EVP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Bill & Melinda Gates Foundation was a funder for the Committee for Economic Development.

Lee C. Bollinger is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

William J. McDonough is a trustee at the Committee for Economic Development and was the president & CEO for the Federal Reserve Bank of New York.

Peter G. Peterson is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.

John E. Sexton is a trustee at the Committee for Economic Development, was the chairman for the Federal Reserve Bank of New York and the chair Council of Chairs for the Federal Reserve System.

Roger W. Ferguson Jr. is a co-chairman for the Committee for Economic Development and was the vice chairman for the Federal Reserve Board.

Barbara B. Grogan is a trustee at the Committee for Economic Development and was the chair - Denver branch for the Federal Reserve Bank of Kansas City.

James E. Rohr is a trustee at the Committee for Economic Development,

was a director – Cleveland for the Federal Reserve Bank of Cleveland and a member of the Federal Advisory Council to the Federal Reserve Board.

Jeffrey A. Joerres is a trustee at the Committee for Economic Development and a director at the Federal Reserve Bank of Chicago.

John P. White is a trustee at the Committee for Economic Development and was the deputy director for the U.S. Office of Management and Budget.

George P. Shultz is a trustee at the Committee for Economic Development and was a director at the U.S. Office of Management and Budget.

James A. Johnson is a trustee at the Committee for Economic Development and was the chairman for Fannie Mae.

Thomas P. Gerrity is a trustee at the Committee for Economic Development and was a director at Fannie Mae.

Kenneth M. Duberstein was a VP for the Committee for Economic Development and a director at Fannie Mae.

Richard H. Davis is a trustee at the Committee for Economic Development and was the president of the Homeownership Alliance.

Homeownership Alliance is an advocacy group for Freddie Mac, an advocacy group for Fannie Mae and a trade groups organization

Letitia James is the Attorney General of New York, the chair for the Committee on Economic Development and obtaining her Juris Doctor degree at Howard University.

Kamala D. Harris graduated from Howard University and was the vice president of the Joseph R. Biden Jr Administration.

Earl G. Graves is a trustee at the Committee for Economic Development and a trustee at Howard University.

Vernon E. Jordan Jr. is a trustee at Howard University, a senior counsel at Akin, Gump, Strauss, Hauer & Feld, LLP, an honorary trustee at the Brookings Institution (think tank) and was the president of the Economic Club of Washington.

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for Nasdaq Inc.

NASDAQ Stock Market Inc. is the former name of Nasdaq Inc.

Deborah L. Wince-Smith was a director at the NASDAQ Stock Market Inc., a director at Nasdaq Inc. and is a member of the Belizean Grove.

Merit E. Janow was a director at the NASDAQ Stock Market Inc. and is a member of the Belizean Grove.

Belizean_Grove is the equivalent to the male-only social group, the Bohemian Club.

Henrietta Holsman Fore is a member of the Belizean Grove and a trustee at the Aspen Institute (think tank).

Henry A. Kissinger was a member of the Bohemian Club and a lifetime trustee at the Aspen Institute (think tank).

Walter Isaacson is the president & CEO for the Aspen Institute (think tank) and was the chairman & CEO for CNN.

John J. Phelan Jr. was a lifetime trustee at the Aspen Institute (think tank) and a chairman & CEO for the New York Stock Exchange.

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank) and the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

David M. Rubenstein was a benefactor at the Aspen Institute (think tank), (spent Thanksgiving with Joe Biden), is the co-chairman for the Brookings Institution (think tank), the president of the Economic Club of Washington and a co-founder & co-CEO for the Carlyle Group.

Edward J. Mathias is a director at the Economic Club of Washington and a managing director at the Carlyle Group.

Jerome H. Powell (Jay) was a partner at the Carlyle Group and is the Chairman for the Federal Reserve System.

Ben S. Bernanke was a chairman for the Federal Reserve Board and is a distinguished fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Donald L. Kohn is a senior fellow at the Brookings Institution (think tank), was the vice chairman for the Federal Reserve Board and a member of the Federal Open Market Committee (FOMC).

Alice M. Rivlin is a senior fellow at the Brookings Institution (think tank) and was the vice chair for the Federal Reserve Board.

Richard C. Blum is an honorary trustee at the Brookings Institution (think tank), married to Senator Dianne Feinstein and an Economic Advisory Council member for the Federal Reserve Bank of San Francisco.

Louis W. Cabot is an honorary trustee at the Brookings Institution (think tank) and was a director at the Federal Reserve Bank of Boston.

Susan M. Collins is a non-resident senior fellow at the Brookings Institution (think tank) and a director, Detroit branch for the Federal Reserve Bank of Chicago.

Glenn H. Hutchins is a trustee at the Brookings Institution (think tank) and a director at the Federal Reserve Bank of New York.

John C. Whitehead is an honorary trustee at the Brookings Institution (think tank) and was the chairman for the Federal Reserve Bank of New York.

Lael Brainard was a VP & director for the Brookings Institution (think tank) and is a member of the Federal Reserve Board.

Karen Dynan was a VP for the Brookings Institution (think tank) and a senior adviser for the Federal Reserve Board.

Douglas W. Elmendorf was a senior fellow at the Brookings Institution (think tank) and an assistant director, Research and Statistics for the Federal Reserve Board.

Donald L. Kohn is a senior fellow at the Brookings Institution (think tank) and was a vice chairman for the Federal Reserve Board.

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society and is a member of the Bretton Woods Committee.

Alan S. Blinder is a member of the Bretton Woods Committee and was a vice chairman for the Federal Reserve Board.

Donald L. Kohn is a member of the Bretton Woods Committee and was a vice chairman for the Federal Reserve Board.

Edwin M. Truman is a member of the Bretton Woods Committee and was a director of the international finance division for the Federal Reserve Board.

Paul A. Volcker is a member of the Bretton Woods Committee and was the chairman for the Federal Reserve Board.

Stanley Fischer is a member of the Bretton Woods Committee and the vice chairman for the Federal Reserve Board.

Randal K. Quarles is a member of the Bretton Woods Committee and a vice chairman for supervision nominee for the Federal Reserve Board.

George Soros is a member of the Bretton Woods Committee and the founder & chairman for the Open Society Foundations.

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

Timothy D. Adams is a director at the Atlantic Council of the United States (think tank) and was an undersecretary for the U.S. Department of the Treasury.

David D. Aufhauser is a director at the Atlantic Council of the United States (think tank) and was a general counsel for the U.S. Department of the Treasury.

James A. Baker III is an honorary director at the Atlantic Council of the United States (think tank) and was a secretary for the U.S. Department of the Treasury.

Kenneth W. Dam is a lifetime director for the Atlantic Council of the United States (think tank) and was a deputy secretary for the U.S. Department of the Treasury.

Stuart E. Eizenstat is a director at the Atlantic Council of the United States (think tank) and was a deputy secretary for the U.S. Department of the Treasury.

Robert M. Kimmitt is a director at the Atlantic Council of the United States (think tank) and was a deputy secretary for the U.S. Department of the Treasury.

George P. Shultz is an honorary director at the Atlantic Council of the United States (think tank) and was a secretary for the U.S. Department of the Treasury.

Herbert M. Allison Jr. was a director at the Atlantic Council of the United States (think tank) and an assistant secretary at the U.S. Department of the Treasury.

Teresa M. Ressel was a director at the Atlantic Council of the United States (think tank) and an assistant secretary at the U.S. Department of the Treasury.

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the International Rescue Committee.

Timothy F. Geithner was a secretary for the U.S. Department of the Treasury, an overseer at the International Rescue Committee and is a director at the International Rescue Committee.

Indra K. Nooyi is an overseer at the International Rescue Committee and was a director at the Federal Reserve Bank of New York.

ONE Campaign is a partner with the International Rescue Committee.

Jay Mazur is an overseer at the International Rescue Committee and was a director at the Roosevelt Institute.

Jonathan Soros is a senior fellow at the Roosevelt Institute and George Soros’s son.

George Soros is Jonathan Soros’s father and was the chairman for the Foundation to Promote Open Society.

Foundation to Promote Open Society was a funder for the Roosevelt Institute and the Climate Reality Project.

Joseph E. Stiglitz is the chief economist & senior fellow for the Roosevelt Institute, a director at the Climate Reality Project, a chairman for the Council of Economic Advisers and shared the 2001 Nobel Prize in economics with George A. Akerlof.

George A. Akerlof shared the 2001 Nobel Prize in economics with Joseph E. Stiglitz is a professor at the University of California, Berkeley and married to Janet L. Yellen.

Janet L. Yellen is married to George A. Akerlof, a professor emeritus for the University of California, Berkeley, the chairman for the Council of Economic Advisers, the chair for the Federal Open Market Committee (FOMC) and the chair for the Federal Reserve Board.

David H. Romer is a professor at the University of California, Berkeley, a junior staff economist for the Council of Economic Advisers and was a senior fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank), a senior counsel at Akin, Gump, Strauss, Hauer & Feld, LLP and was the president of the Economic Club of Washington.

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for Nasdaq Inc. and is the lobby firm for the U.S. Chamber of Commerce.

NASDAQ Stock Market Inc. is the former name of Nasdaq Inc.

Mark S. Ordan is a director at the Economic Club of Washington and a director at the U.S. Chamber of Commerce.

Joseph M. Rigby is a director at the Economic Club of Washington, and a director at the U.S. Chamber of Commerce.

Eric A. Spiegel is a director at the Economic Club of Washington and a director at the U.S. Chamber of Commerce.

Robert G. Liberatore is a director at the Economic Club of Washington and was a director at the Atlantic Council of the United States (think tank).

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

George Soros is the founder & chairman for the Open Society Foundations.