Very interesting article about the market rally of last few years and possible ramifications
Quote in part"
Summary
Richard W. Fisher's appearance on CNBC this week offered remarkable insight into why voting members on the FOMC embraced zero percent rate policy as well as QE for so many years.
One of the world's most influential people in any room acknowledged that the Fed wanted to push stocks higher to make participants feel wealthier.
However, there have been several problems with the Fed's wealth effect ambitions.
Richard W. Fisher served as the President of the Federal Reserve Bank of Dallas for more than a decade (2005-2015). His appearance on CNBC this week offered remarkable insight into why voting members on the Federal Reserve Open Market Committee (FOMC) embraced zero percent rate policy as well as quantitative easing (QE) for so many years.
One of the most controversial statements? Fisher candidly admitted, "What the Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect."
Article is at: 'We Front-Loaded An Enormous Stock Market Rally' | Seeking Alpha
Quote in part"
Summary
Richard W. Fisher's appearance on CNBC this week offered remarkable insight into why voting members on the FOMC embraced zero percent rate policy as well as QE for so many years.
One of the world's most influential people in any room acknowledged that the Fed wanted to push stocks higher to make participants feel wealthier.
However, there have been several problems with the Fed's wealth effect ambitions.
Richard W. Fisher served as the President of the Federal Reserve Bank of Dallas for more than a decade (2005-2015). His appearance on CNBC this week offered remarkable insight into why voting members on the Federal Reserve Open Market Committee (FOMC) embraced zero percent rate policy as well as quantitative easing (QE) for so many years.
One of the most controversial statements? Fisher candidly admitted, "What the Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect."
Article is at: 'We Front-Loaded An Enormous Stock Market Rally' | Seeking Alpha