Okay, I think I’ve got my question for the Fed chairman. But before I tell you what it is, read this snippet from Newswires’ Michael Derby, who’s covering Bernanke’s speech at the National Press Club:
MARKET TALK: Bernanke Lays Out QE2′s Successes
12:40 (Dow Jones) Here are the reasons why Bernanke thinks QE2 is working: “Equity prices have risen significantly, volatility in the equity market has fallen, corporate bond spreads have narrowed, and inflation compensation as measured in the market for inflation-indexed securities has risen from low to more normal levels.” As for the rise in bond yields, the chairman says that’s what you would expect in light of a monetary policy accommodation.
Okay, got it? So here’s my question:
Are you kidding me?
The first thing, the first thing the Fed chairman trots out as a justification for creating $600 billion out of thin air and pumping it into the economy, is that it’s driving up stock prices? Seriously? That’s part of the Fed’s mandate now?