#38: Danielle DiMartino Booth On The Future Of The Federal Reserve
Superinvestors and the Art of Worldly Wisdom
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The Importance of Feedback in the Fed's Policymaking Framework
The K-shaped recovery that we've seen in which markets have screamed higher while many Americans are suffering is emblematic of this policy dilemma. I think it shows how very trapped the Fed is within its own policymaking framework. All they can do is try and push the wealth effect through the stock market. You can put reserves into the banking system, but you can't force the banks to lend. But there's also something to be said for the feedback loop between the Fed and its support of the corporate bond market. The credit has become much, much more the focus at the Fed versus the stockMarket. People simply do not understand this relationship,. It is exactly what triggered the double baz
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