High-Level Federal Reserve Official: Fed Intentionally “Front-Loaded An Enormous [Stock] Market Rally in Order to Create a Wealth Effect”

Central banks – including the Bank of Japan, Bank of Israel, Bank of Switzerland and the Czech Republic – have been buying stocks to prop up their nations’ stock markets.

We’ve noted for years that Fed policy is aimed at boosting stocks, as well.

Today, the decade-long former president of the Federal Reserve Bank of Dallas – a voting member of the the Fed’s principal monetary policymaking group (the Federal Open Market Committee) – admitted (full interview):

What The Fed did, and I was part of it, was front-loaded an enormous rally starting in 2009 … in order to create a wealth effect…

I wouldn’t blame [the declining stock market]  on China.

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An uncomfortable digestive period is likely now.

Indeed, only higher income brackets ever liked the Fed’s “wealth effect” policies.

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