The Fed Hasn’t Blown Another Asset Bubble
- Investors feel whiplashed by the Fed, but while this is understandable, this isn’t necessarily justified as financial markets are a bit of a side show for the Fed.
- The Fed is also accused of having blown another asset bubble, but it is even debatable whether there is an asset bubble, let alone the Fed being responsible for it.
- We actually think there is much to say for the proposition that the Fed actually manages the economy pretty well, and asset bubbles don’t feature large in the Fed’s purview.
Source: The Fed Hasn’t Blown Another Asset Bubble | Seeking Alpha
Tags: Monetary policy · The Markets