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General TradingF
Fed Put
The Fed Put is the market belief that the Federal Reserve will intervene with accommodative monetary policy (such as rate cuts or quantitative easing) to support financial markets during significant downturns. It creates a perceived floor under asset prices.
Example
“During the market crash, investors bought the dip aggressively, confident in the Fed Put — they believed the Federal Reserve would step in with emergency rate cuts if stocks fell much further.”