On May 15 the United States Federal Reserve Board announced that it would cut short-term interest rates by half a percentage point. It was the fifth rate cut this year and brought the total amount of monetary easing to 2.5 percentage points.

The stock market did not greatly react to the rate cut that day, for it had been widely expected. But the market later rebounded after the release of economic indicators on price stability, apparently sensing the possibility of another cut.

This sort of reaction indicates that the psyche of the market is wavering between the worsening of the actual economy that is behind the rate cuts, and concerns of inflation, as can be seen in rising gasoline prices.