Wall street soars, investors countdown key Fed meeting.

Investors appear to be buying what the Federal Reserve is selling at the minute, that is they’re shrugging off those pesky inflation concerns.

The Nasdaq and S&P 500 hit fresh record-highs ahead of the Fed meeting this week.

VFS Group’s James Whelan says there’s one key question in all of this.

“Will the Fed care about the market reaction? That’s the playbook for the next six months. Inflation, Fed response, market response to the Fed, and then will the market actually care? We’ve had four years of the Fed caring about everything the market did.”

JAMES WHELAN, VFS GROUP

The four years Whelan’s referring to are the Donald Trump years, where the former President often boasted of how strongly Wall Street performed.

But not everyone trusts the central bank right now, billionaire hedge funder Paul Tudor Jones is cynical.

“He (Tudor) called the stock market crash in ’87. History is on his side for calling big things. He’s saying if he doesn’t see any sort of commentary from the Fed this week, he’s going all-in on every inflationary hedge there is”

DANIEL WEINER, MARKET STRATEGIST

Expectations remain that the central bank will hold tight, and keep pace with their bond purchases.

James King of AFEX says the amount of stimulus that’s entered the market over the last 18 months is extraordinary.

“The last 18 months or so there’s been a meteoric rise in the Fed’s balance sheet. From four trillion dollars to almost eight trillion dollars in an 18 month period”

The next update is due Wednesday US time, and all investors will be watching.