24/7 Newsfeed

Put Reason 24/7 on Your Site


Follow Reason 24/7 on Twitter and via RSS

Federal Reserve May Trigger New Bubble with Bond Buys

The Federal Reserve may be contributing to the next asset price bubble through its aggressive purchase of bonds to spur U.S. growth, while its near-zero interest rates could trigger future inflation, a senior Fed official said on Thursday.

Kansas City Federal Reserve President Esther George, in remarks that will clearly stamp her as a hawk on the U.S. central bank's policy-setting committee, went out of her way to make clear that she is not comfortable with recent Fed action.

Source: Reuters. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.