BAML: Fed In Delicate Position With Wealth Effect And Rate HikesMark Melin
The wealth effect is increasingly dependent on the performance of the stock market as opposed to home price appreciation, and this is creating a quandary. The U.S. Federal Reserve is walking a tight rope, a Bank of America Merrill Lynch piece points out. Net worth-income data can be viewed from two perspectives, showing why it might want to tighten policy and why it cannot tighten. Asset values are at dangerous extremes relative to incomes, but the weak income story is precisely why the Fed . . .
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email email@example.com and we will get back to you as quick as humanly possible