Fed Vice Chairman Sees No Asset Value ‘Bubble’

Fed Vice Chairman Sees No Asset Value ‘Bubble’

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!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge. Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.