The Fed's Dudley: Higher Rates Are Coming… There is No "Fed Equity Market Put"

The Fed’s reputation is on borrowed time.

Much of the so called “economic recovery” that began in 2009 has been based on the Fed’s credibility as a Central Bank to rein in the collapse.

However, at this point even the financial media has begun to realize that the Fed has elevated asset prices (stocks, homes, etc.) and nothing else. Incomes have not moved in line with stocks nor has GDP growth nor has the employment picture.

Put another way, everyone now realizes that the Fed has boosted stocks and don’t little else. This has lead some to accuse the Fed of targeting the markets rather than boosting the economy (see the recent wave of legislation meant to increase Congressional oversight of the Fed being introduced in Congress).

The Fed isn’t doing itself any favors in terms of defending its track record.

Enter Bill Dudley: former Goldman Sachs bank turned NY Fed President.

More