The Daily Bell – Fed Regulatory Stance Seen Boosting ‘Wall Street Party’.
Fed at Odds With BIS on Supervisory Approach … Federal Reserve officials have been clear they would like to use regulatory policy as a first line of defense when dealing with excess risk-taking in financial markets, with interest rates to be employed only in extreme cases when other tools have been exhausted – WSJ
Dominant Social Theme: Either raise rates or regulate borrowing – but do something a hard man would admire.
Free-Market Analysis: We almost missed this strange little article about some very big issues. Seems the Bank for International Settlements is upset with the Federal Reserve over its market posture.
Fed officials want to regulate market risks and forego interest rate hikes. BIS officials are on record stating that rates are too low in the United States and that asset bubbles are being created as a result.
Here’s more:
“Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment,” Fed Chairwoman Janet Yellen said in a July speech. “As a result, I believe a macroprudential approach to supervision and
– See more at: http://www.thedailybell.com/news-analysis/35951/Fed-Regulatory-Stance-Seen-Boosting-Wall-Street-Party/#sthash.2zez4vBq.dpuf
