Friday, the #2 official at the Fed said that he does not see signs of inflation in asset values in financial markets.
Asked in a TV interview if he saw unintended consequences or new bubbles stemming from the strong Fed policy response to the C-19 coronavirus chaos, Fed Vice Chairman Richard Clarida replied: “I certainly do not.”
Mr. Clarida said it is premature to talk about the Fed reversing course on its monetary policy. He said the Fed’s $2-T in asset purchases and 11 lending facilities were designed only to get credit flowing in the economy.
“We think its working,” Mr. Clarida said.
For our overview of the Fed’s current policy position, click here.
Have a healthy weekend, Keep the Faith!