Seriously folks, the Federal Reserve's efforts to keep the U.S. economy
growing may not work unless the stock market keeps moving higher.
According to the LATimes’ Tom Petruno officially, the Federal Reserve isn't
supposed to worry about keeping stock prices flying high. But when Fed Chairman Ben S. Bernanke was
asked about the market's outlook last week on Capitol Hill, he sounded like a
lot of bullish Wall Street investment strategists.
"I don't see much evidence of an equity bubble,"
he told the Senate Banking Committee in his semiannual testimony on Fed policy.
Stocks "don't appear overvalued given earnings and interest rates." More important for the markets, Bernanke
pledged to continue the Fed's policy of pumping colossal sums into the
financial system to support the economic recovery.
As stocks flirt with the record highs reached just before
the global financial crash of 2008, memories of that catastrophe loom large.
Many Americans have abandoned equities since the crash, terrified of living
through another one. Yet the Fed's efforts to keep the economy growing may not
work unless the stock market keeps moving in one direction from here: higher….
Read all about it at http://www.latimes.com/business/la-fi-0303-bull-market-20130303,0,7845800.story
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