Steven Pearlstein:
The big mistake the Federal Reserve is
making right now
“Which of these two
developments strike you as a bigger risk to economy?
A. An annual
inflation rate of only 1.6 percent instead of the target of 2 percent; or
B. A stock market
levitating at record levels as a result of artificially low interest rates,
record levels of corporate indebtedness and stock buybacks, an orgy of richly
priced mergers and initial public offerings and a trillion-dollar federal
budget deficit at a time of full employment?
If you answered B,
then — congratulations! — you pass the 10-second sanity test offered by the
Society of American Economic Historians.
If you answered A,
then you might want to apply for one of the two still-open seats on the Federal
Reserve Board, where you will feel right at home with other policymakers who
appear to have learned nothing from the past four recessions.”
Related:
https://vivekjayakumar.blogspot.com/2019/04/feds-monetary-policy-and-asset-bubbles.html
Related:
https://vivekjayakumar.blogspot.com/2019/04/feds-monetary-policy-and-asset-bubbles.html