The cost of extended monetary easing is likely to be amplified as the Fed’s great pivot to a new era of monetary easing was recently declared in June’s FOMC meeting. Over-inflated asset prices in bonds, stocks, real estate, coined as the everything bubble, is perhaps the most talked about cost of extended monetary policy. Stocks are no longer cheap but is that still the case with the Fed’s great pivot? The P/E10...
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The latest Federal Open Market Committee (FOMC) meeting, June 19, could have been interpreted as the Fed’s great pivot to a new era of monetary easing from what was a brief period of “patient” normalization policy. Fed officials no longer made reference to being “patient” on rates. Instead, the tone was more dovish with talk about “uncertainties” around its outlook increasing. The Fed’s great pivot is an admission that...
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