High-Level Federal Reserve Official: Fed Intentionally “Front-Loaded An Enormous [Stock] Market Rally in Order to Create a Wealth Effect”

Posted on January 5, 2016 by WashingtonsBlog

http://www.washingtonsblog.com/2016/01/high-level-federal-reserve-official-fed-intentionally-front-loaded-enormous-stock-market-rally-order-create-wealth-effect.html 

Central banks – including the Bank of Japan, Bank of Israel, Bank of Switzerland and the Czech Republic – have been buying stocks to prop up their nations’ stock markets.
We’ve noted for years that Fed policy is aimed at boosting stocks, as well.
Today, the decade-long former president of the Federal Reserve Bank of Dallas – a voting member of the the Fed’s principal monetary policymaking group (the Federal Open Market Committee) – admitted (full interview):

What The Fed did, and I was part of it, was front-loaded an enormous rally starting in 2009 … in order to create a wealth effect…
I wouldn’t blame [the declining stock market]  on China.
***
An uncomfortable digestive period is likely now.

Indeed, only higher income brackets ever liked the Fed’s “wealth effect” policies