Investors might not know it, but their exuberance is effectively buying the Fed more time to keep monetary policy steady. Evidence of market optimism is all around us. We’ve come full circle: The stock market has recovered from its April lows and is on pace to surpass highs last seen in February,

U.S. President Donald Trump said on Friday he would not appoint anyone to head the Federal Reserve who would not lower interest rates from where they are, setting perhaps the most explicit litmus test yet for candidates to be the next central bank chief to align with his demands for steep rate cuts in order to get the job.