The Fed Is Backed Into a Corner By Sy Harding Published November 22, 2013 The minutes of the Fed’s last FOMC meeting, released this week, confirm that the Fed believes it must begin to taper back its stimulus soon. At this point, the longer QE continues the greater the risk of asset bubbles forming, the bursting of which would destabilize the economy and make it even more difficult to exit. Economists and analysts have been concerned from the beginning about how the Fed would be able to reverse the massive QE stimulus, which has been the major driving force of the anemic economic recovery and the powerful bull market in stocks, without also reversing the momentum of both. Fed Chairman Bernanke has always provided assurances that the Fed would have ways of doing that when the time arrives. financialsense/contributors/sy-harding/fed-is-backed-into-corner Tags: #Fed #Finance #Economy #QE #FOMC #stocks #Bernanke
Posted on: Mon, 25 Nov 2013 13:52:02 +0000