"Investors need to focus not only on what the Fed is going to do with interest rates, but also on what’s happening with the money supply and bank lending.
...The M2 measure of the money supply grew a very rapid 24.8% in 2020 and 12.4% in 2021. Year-to-date through July, M2 has grown at only a 1.8% annual rate in 2022. Since inflation came from this money printing, we see this as progress!
...In this precarious environment, we are sticking to our view that the US stock market is “range bound.” It will not get back into a long-term bull market at least until we know how far the Fed has to go to control inflation"
(The Fed: What to Expect and What to Watch dated 09/12/2022 by Brian S. Wesbury, Chief Economist, Robert Stein, CFA & Dep. Chief Economist, and Strider Elass, Senior Economist with First Trust Advisors LP).
Full article can be found here: https://www.ftportfolios.com/Commentary/EconomicResearch/2022/9/12/the-fed-what-to-expect-and-what-to-watch