Fed’s Daly is concerned about the frequency of Federal Reserve market interventions
Mary Daly is head of the San Francisco Federal Reserve branch, earlier comments here:
The Wall Street Journal have a bit of a recap up on her remarks, focusing on those she made regarding Fed intervention in markets:
- "The frequency and scale of our interventions is concerning,"
- "Without changes to our financial infrastructure, the Federal Reserve may regularly be called to step in to stabilize markets during turbulent periods,"
- "and not just for 100-year floods like Covid-19, but for more typical disruptions associated with average shocks to the global and domestic economy."
Fair comments indeed. The 'Fed put' is a reliable, comforting warm blanket for the market ... and its leading to financial instability. And a huge party of course ;-)
Link the Journal piece here (may be gated)