Monday, January 17, 2011

Fed's Stock Market Targeting

Send all economists that still discuss any form of inflation targeting in retirement. If you did not know the real economic success of quantitative easing, while it was argued to be lower interest rates, but you have got rising interest rates and commodities prices - it is, in fact, rising stock market! Just listen to Ben Bernanke:
Policies have contributed to a stronger stock market, just as they did in March of 09 when we did the last iteration of this. The S&P is up 20% plus and the Russell, which is small cap stocks, is up 30%, so I think a stronger economy helps small businesses more than it helps large businesses.

The real Fed's "hardcore question" starts about 1 minute into the video:

Read more on this:

Thinking the Unthinkable

Guest Post: “The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond Purchases … Is To Drive Up Wall Street

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