Regional Fed presidents warn asset purchases are creating risks
Robert Kaplan expresses concern over Fed’s response to market funding pressures
Two senior Federal Reserve officials have signalled concerns the central bank’s current monetary policy stance is increasing the risk of financial instability.
Both Boston Fed president Eric Rosengren and Dallas Fed president Robert Kaplan have said the Fed’s current and projected policy rates are contributing to elevated risky asset valuations.
Kaplan also argued that the Fed’s recent asset purchases may be causing asset price risk.
The Fed reduced rates three times from July to October
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