Print

Federal Reserve Intentionally “Front-Loaded An Enormous [Stock] Market Rally in Order to Create a Wealth Effect”: Former Fed Official
By Washington's Blog
Global Research, January 06, 2016
Washington's Blog 5 January 2015
Url of this article:
https://www.globalresearch.ca/fed-reserve-intentionally-front-loaded-an-enormous-stock-market-rally-in-order-to-create-a-wealth-effect-fed-official/5499537

Central banks – including the Bank of Japan, Bank of Israel, Bank of Switzerland and the Czech Republic– have been buying stocks to prop up their nations’ stock markets.

We’ve noted for years that Fed policy is aimed at boosting stocks, as well.

Today, the decade-long former president of the Federal Reserve Bank of Dallas – a voting member of the the Fed’s principal monetary policymaking group (the Federal Open Market Committee) – admitted (CLICK full interview):

 

What The Fed did, and I was part of it, was front-loaded an enormous rally starting in 2009 … in order to create a wealth effect…

I wouldn’t blame [the declining stock market]  on China.

***

An uncomfortable digestive period is likely now.

Indeed, only higher income brackets ever liked the Fed’s “wealth effect” policies.

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article.