Powell: We’d rather clean up after a bubble than try to prevent one

Bank of America’s economists pull together some insights from Fed Chair Powell’s appearance on 60 Minutes this weekend. I thought this was the most interesting insight: Most Fed officials in recent years have endorsed an “asymmetric risk management” approach to potential asset “bubbles”: if bubbles are hard to identify and manage then allow them play out, but intervene aggressively if the popping of th...

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source https://thereformedbroker.com/2021/04/13/powell-wed-rather-clean-up-after-a-bubble-than-try-to-prevent-one/