News analysis
Market sentiment changes by the day and hour. But as I write, financial markets are starting to look just a bit better. The reason is embarrassing for believers in sound money. The prevailing sense—and this could change tomorrow—is that the Federal Reserve is getting cold feet in its stated mission to crush inflation through interest-rate hikes.
Even if dangerous—loose money is a narcotic for financials—there is nothing surprising about this. Center-left commentators for weeks, writing in the most influential journals of opinion, have sent a clear message: Democrats should choose inflation over recession. Between the two, recession/depression is electorally more dangerous to the party, not just this November but in two years especially….