Free Republic

The Federal Reserve is prepared to let the stock market drop another 15% to 20% before it acts in any way to stem the decline, says Greg Jensen, co-chief investment officer at Bridgewater Associates, the world's biggest hedge fund. With inflation soaring and unemployment dropping, the Fed has little reason to act, he told Bloomberg. Consumer prices soared 7% last year, and the unemployment rate dipped to 3.9% in December from 4.2% in November. "Some decline in asset prices is not a bad thing from the Fed's perspective, so they're going to let it happen," Jensen he said. "At these...