The Fed's minions worked overtime early last week to convince investors the surge of inflation confronting U.S. consumers won't cause them to prematurely take away their proverbial stimulus bond-buying punch bowl.

That was enough to prompt investors to bid up the value of the S&P 500 (Index: SPX) up toward the 4,200 level.

But the closer it got, and especially once it crossed that line, the Fed's minions started really talking up how they want to talk about how and when they'll take away their proverbial punch bowl.

There was more stuff that happened in the past week, but as you'll read in the summary of market-moving headlines below, that description that the Fed has started talking about tapering its stimulus bond buys pretty much summarizes all the U.S. stock market's action ahead of the Memorial Day holiday weekend.

Monday, 24 May 2021

• Signs and portents for the U.S. economy:
  • U.S. home prices to keep racing ahead with risks to upside - Reuters poll
  • Fed's balance sheet could reach $9 trillion by end of 2022, NY Fed report projects
    • Analysis: Job-inflation tradeoff, exiled from Fed policy, could mean a hot summer
  • Oil jumps over 3% as fears of Iranian exports ease
• Fed minions say inflation no big deal or maybe it is, thinking about issuing digital currency, worry about financial stability:
  • Fed's Brainard says she expects pricing pressures to subside over time
    • Fed's George says doesn't dismiss risk of an inflation surge
  • Fed's Brainard says central bank stepping up exploration of digital dollar
    • Fed's Bostic: Crypto, stablecoins an 'area we cannot ignore'
  • Fed's Bullard: financial stability poses a potential risk for economy
• Bank of England says rising prices no big deal:
  • Bank of England mostly unfazed by inflation omens
• Wall Street climbs on tech gains as U.S. Treasury yields dip

Tuesday, 25 May 2021

• Signs and portents for the U.S. economy:
  • U.S. new home sales drop in April; March sales revised sharply lower
    • U.S. home prices rose more than expected in March - S&P Case-Shiller
  • Fed reverse repo volume sparks worries U.S. short-term rates could go below zero
  • Oil edges up as rising demand faces Iran supply worries
• Fed minions want to keep juicing U.S. housing market, economy, except for minions who don't:
  • Fed's Barkin: not yet seeing excess leverage in housing market
  • Fed's Evans says easy monetary policy has his 'full' support
  • Fed policymakers edge closer to opening debate around taper
    • Fed 'talking about talking about' tapering bond buying -Daly
• Bigger trouble developing in Eurozone:
  • German economy stutters as COVID-19 curbs push up savings rate
• BOJ minions running out of ideas, ECB minions want to keep juicing Eurozone economy:
  • BOJ putting independence at risk with quasi-fiscal steps, says ex-central bank policymaker
  • ECB must keep money taps fully open as crisis not over, Stournaras says
    • Too early for ECB to taper emergency bond buys: Panetta
• Wall Street ends slightly lower as investors eye inflation clues

Wednesday, 26 May 2021

• Signs and portents for the U.S. economy:
  • Oil settles higher on stronger demand outlook as U.S inventories fall
• Fed minion thinking about slowing bond-buys juicing U.S. economy, digital currency:
  • Fed's Quarles signals he is open to talks on bond program
  • Fed's Quarles sketches out potential components of crypto review
• BOJ minions looking to slow ETF, bond-buying:
  • BOJ heading in right direction with 'stealth-tapering', says opposition heavyweight
  • BOJ should restrain ETF buying when markets calm, says board member Suzuki
• Wall Street edges up as U.S. bond yields stay tame

Thursday, 27 May 2021

• Signs and portents for the U.S. economy:
  • U.S. core capital goods orders, shipments increase strongly in April
  • Biden to push $6 trillion U.S. budget for next fiscal year - NYT
    • Yellen says Biden budget to push U.S. debt higher, not inflation
    • Yellen says Biden budget raises U.S. debt-to-GDP ratio but is responsible
  • U.S. weekly jobless claims drop to fresh 14-month low; economic recovery gaining speed
    • At least 24 Republican-led states are ending increased unemployment benefits as governors say businesses need workers
  • Oil prices gain 1%, boosted by U.S. economic data
    • U.S. drivers to get hit by soaring pump prices over Memorial Day holiday
• Fed minion worried about inflation, wants to slow bond buys juicing economy, signs building that Fed-juiced liquidity flooding market may send interest rates negative:
  • Fed's Kaplan says labor market tightening, calls for taper talk
  • Fed reverse repo volume hits record high
• Bigger inflation developing all over:
  • China's industrial profits growth slows in April amid high commodity prices
  • White House, Treasury watching inflation closely, Yellen says
• Wall Street ekes out gain as weekly jobless claims fall

Friday, 28 May 2021

• Signs and portents for the U.S. economy:
  • U.S. consumer sentiment declined in May
  • Brent ends at two-year high as demand outlook counters supply fears
  • Biden's budget plan swells U.S. debt before tax hikes kick in
    • White House projects U.S. GDP growth to drop to 1.8% a year by mid-2020s -New York Times
• Growth signs for rest of world seen in China, Japan factories:
  • Japan's output seen rising as exports cushion pandemic's impact: Reuters poll
  • China's factory activity seen growing steadily in May: Reuters poll
• Bigger inflation developing in Eurozone:
  • Euro zone sentiment hits three-year high, inflation expectations jump
• BOJ, ECB minions may be forced to continue stimulus:
  • BOJ considers extension to pandemic-aid scheme as COVID curbs persist
  • Europe has passed turning point but still needs ECB support: Schnabel
• Wall Street shakes off inflation rise and closes higher

What positives and negatives did Barry Ritholtz see in the markets and economy news heading into the Memorial Day holiday weekend? Click through to find out!