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Isn't the federal reserve intentionally propping up markets? I thought in one of the reports they argued that there was higher inflation but it was restricted t
by swiley 6y ago
Isn't the federal reserve intentionally propping up markets? I thought in one of the reports they argued that there was higher inflation but it was restricted to certain markets like housing and so over all inflation was ~2%.
- tomatocracy 6y agoNot sure it's a case of intentionally propping up equity markets (of course interest rate policy directly impacts on government bond markets although I don't think that would normally be described as propping them up). But the phenomenon has been around for a while - I've heard it called "biflation" - high inflation in some markets/products (asset markets in general, as well as some services), alongside deflation in others like imported goods with not many goods/services actually following the middle road which the official inflation statistics give as an average. It's exaggerated to some extent but it's definitely there.