WASHINGTON (Reuters) - Falling unemployment and an improving U.S. economy are evidence that the Federal Reserve should start raising interest rates, a top Fed official said on Wednesday, citing risks of asset bubbles if the central bank keeps rates too low for too long.
WASHINGTON, April 15 (Reuters) - Falling unemployment and an improving U.S. economy are evidence that the Federal Reserve should start raising interest rates, a top Fed official said on Wednesday,...
cure are: Asset prices have raced ahead of earnings and fundamentals. This is nothing more than the definition of an asset bubble . The Fed will most likely end up tightening at the very end of this business cycle and screw up the next several generations
higher than the 8.2% peak level of total lending held by Japanese lenders during the collapse of that country’s asset bubble . In Japan’s case, a series of official discount rate hikes beginning in May 1989 caused NPL assets to accumulate, leading
January appearance on Bloomberg TV, Swiss investment advisor Marc Faber opined, “We are in a gigantic financial asset bubble ,” whose bursting is coming. Volatility, where prices gyrate, is a fact. However, there is “upside” and “downside” volatility
after a five-year absence. Japan’s economy has been particularly poor since the early 1990s, when the Japanese asset bubble broke. Since then, the Japanese economy has often seen economic growth below zero. After his party won 294 of the
interest rates should gradually rise and there is a distinct possibility that the Fed will recognize the inflation and asset bubble risks in this slow tightening policy and, in response, both advance the date of a first federal funds rate hike and increase
depressed. So 2008, particularly if you can imagine adding real estate and commodities, was indeed a true global asset bubble , being the most extreme collective outlier in not just 30 years, but in at least the 88 years of our data and probably forever, given
kind of market environment where the tide lifts all boats. But we are on the trajectory of what may become the third asset bubble in 20 years that will inescapably pop. Now is the time to review your positioning and plan accordingly. Follow AdviceIQ
strong economic growth after a few years? We think that, for economic activity to remain strong after a debt-financed asset bubble bursts, nine criteria have to be in place: monetary policy support, strong private sector cash positions, a turn