When the Fed raises interest rates (a hawkish policy), it indicates that inflation in the economy/or the economy is overheating. This is also when the Fed starts to trim, net, and after a while, when the interest rate medicine takes effect, the economy falls into a recession.
Conversely, when the Fed cuts interest rates or pumps money (a dovish policy), it indicates that the economy is in recession. This is when the Fed starts to nurture, fatten, and cast the net... and after a while, the economy recovers, develops, and prospers.
Understanding this means understanding the flow of money in circulation... And knowing how to act before and after each Fed monetary policy move.

Great breakdown! It's crucial to grasp these cycles to better anticipate market movements and make informed financial decisions. Understanding the Fed's influence on the economy can really give you an edge.