Investing

The Fed could be building a bubble if it cuts rates

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Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on “Monetary Policy and the State of the Economy” in Washington, July 10, 2019.

Erin Scott | Reuters

All eyes in the financial world turned to Capitol Hill this week as Federal Reserve Chair Jerome Powell gave his semi-annual testimony. In his opening statement Powell said, “It appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook. Inflation pressures remain muted.”

What the markets heard was, “Ice cream for breakfast! Candy for everyone!”

The markets clearly believe a rate-cut regime is just…



Source cnbc.com

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