How effective are Fed's monetary policies and tools?
Fed has three simple goals- Grow GDP, keep inflation rate steady and keep the unemployment rate low.
Some argue that Fed's perceived power over the market was exposed during several occasions-
#1. During the 2008 in the midst of sub-prime mortgage crisis, the market continued to plunge despite the Fed's...
Even as Fed balance sheet keeps climbing up and U.S takes on more national debt in the current low-interest rate environment, I am not eager to jump to the premature conclusion and entertain the idea of hyperinflation.
I'm not saying that it is improbable, I am just saying that it is an unlikely and low-probability event. Yes, it is a fat tail risk that...