Economy

The Federal Reserve doesn’t see risks to market stability, even as concern about bubbles grows

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Some market pros see the frenzied short squeezes in Gamestop and other stocks as signs of a bubble brewing, but the Federal Reserve doesn’t seem to and for that reason investors expect asset prices could continue to rise.

Fed Chairman Jerome Powell, at his post meeting briefing Wednesday, was asked about the potential of Fed policy to fuel bubbles in markets and in housing.

Powell explained that the Fed has had to use its extraordinary policy to help the economy with still more than 9 million people out of work.

“It’s very much appropriate that monetary policy be accommodative,” he said. Powell also said with regard to financial stability, the Fed considers asset prices, leverage in the…



Source cnbc.com

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