MarketPR
Morgan Stanley is warning investors not to count on the Federal Reserve to backstop a market downturn, after the new Fed chief signaled that central bank support for equities is no longer a given.
The stock market now faces two key headwinds, the bank says, and the moment represents a defining test for investors who have long positioned around the assumption of policy relief.
Fed Chief Resets the Backstop Assumption The new head of the Federal Reserve made clear the central bank will not ride to the rescue of falling stock prices, removing what markets have historically treated as a floor beneath risk assets.
That statement alone reframes the risk calculus for equity positioning: a selloff that once might have prompted policy accommodation may now simply run its course.
Keep reading