By Sam Bourgi
- Federal Reserve intervention in the U.S. financial system has increased since September, and the trend is expected to continue.
- Fed Chair Jerome Powell admitted the dangers of an ever-expanding balance sheet all the way back in 2012 but seems to be strangely silent on the subject today.
- Surging stock prices represent one area of the market experiencing excess and imbalance as a result of the Fed.
The Federal Reserve’s ongoing repo-mania has breathed new life into the U.S. stock market, instilling a can’t-fail attitude in the mind of investors who have seen their asset values levitate on an almost daily basis.
Fed Chair Jerome Powell doesn’t seem all too concerned about the excess spilling over into the stock market. But a closer look at a meeting transcript from 2012 reveals the Fed boss knows exactly what he’s doing – and the dangers that central-bank meddling poses to the stock market.