SummaryLarge 1-day rallies are usually associated with the bear market rallies.Major bottoms require a policy change.The Fed is still in inflation-fighting mode.gonin/iStock via Getty ImagesThe top 20: daily returns for S&P500The SPDR S&P 500 Trust ETF that tracks the S&P500 soared by 5.5% Thursday - and almost broke into the top 20 daily S&P500 returns in history - since the 1920s. So, what doesit mean?
Lael Brainard, the Vice Chair of the Fed, vowed Wednesday to press the fight against inflation that she said is hurting lower-income Americans the most.It means more interest rate increases and keeping rates higher for longer. Brainard cushioned the comments with an acknowledgement that policymakers will be data dependent and conscious of overdoing tightening.Remember, it could be the last speech before its quiet period of the September meeting.Besides, Federal Reserve Bank of Cleveland President Loretta Mester said Wednesday that she doesn’t expect the economy to fall into recession, but risks of that happening are rising, in a speech in which she stressed that the U.S. central bank needs to press forward with increasin