by R. Christopher Whalen of The Institutional Risk Analyst
R. Christopher Whalen warns that it’s time to change the Fed’s mandate. Are we now in danger of market reversals from QT after the asset inflation of QE? Food for thought.
"First, the FOMC embraced unconventional policy after 2008, greatly expanding the liquidity in the US financial markets and thereby boosting valuations for stocks, bonds and real estate to astronomical levels. Second and most important, the FOMC lied to the American public about these policies. Specifically, by adopting a largely conventional policy narrative that ignores the real world impact of unconventional policy, the FOMC has misled the public and confused the markets."