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Recognizing Bubbles But Still Cautious About Deflating Them

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Jeremy Stein tells Eisinger that it is important for the Fed to recognize when a bubble is taking place and take action including jawboning and regulatory action to limit bubble behaviour in capital markets. Fed chairman Yellen did this for social media stocks and bio tech sector stocks in 2014 by pointing out that that the rise in stock prices were excessive, resulting in a pullback.

Fed chairman Bernanke and New York Fed president Geithner ignore warnings in 2006 about the housing bubble

01/02/2009

Transcripts of the meetings of the Federal Open Market Committee of the Federal Reserve show new Fed chairman Bernanke and Head of the New York Fed discounted the growing risks in the U.S. housing markets in 2006. Fed governors Janet Yellen and Susan Bies raised the issue in meetings at the Fed. Transcripts show a sense of complacency had set in at the Fed with Bernanke confident about a soft landing for the housing market.

Grouped Articles

Central Bankers Hone Tools to Pop Bubbles

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The Fall of Summers

Wall Street Journal 09/15/2013

What's Needed in the Next Fed Chief

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Book Review: 'Stress Test' by Timothy F. Geithner

Wall Street Journal 05/12/2014

The Case Against the Bernanke-Obama Financial Rescue

New York Times 05/16/2014

Geithner, Staying on Script

New York Times 05/17/2014

U.S. Federal Reserve chairwoman Janet Yellen's thinking on unemployment and expected Fed policy in 2014-2015

01/23/2014

Grouped Articles

Don’t Expect Job Data Alone to Persuade Fed on Rates

New York Times 01/23/2014

A Fed Policy Maker, Changing His Mind, Urges More Stimulus

New York Times 01/27/2014

Confronting Old Problem May Require a New Deal

New York Times 01/28/2014

More Men in Prime Working Ages Don't Have Jobs

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Jobs and the Fed

Wall Street Journal 02/08/2014

Fed's Yellen Sets Course for Steady Bond-Buy Cuts

Wall Street Journal 02/12/2014

U.S. Fed's Janet Yellen at the IMF, July 2, 2014- on how she sees monetary policy focussing on full employment and price stability letting regulatory supervision take on task of curtailing bubble activity

07/03/2014

Janet Yellen reemphasizes her view of focussing on full employmen and price stability. She sees regulatory supervision, including higher capital reserve requirements and regulation of short term funding, as better able to fulfill the task of restricting bubble type activities. Yellen says she is aware of the effects on emerging markets of the Fed's policies, in a question and answer session with Christine Lagarde of the IMF.

Grouped Articles

Fed's Yellen Defends Low Rates

Wall Street Journal 07/03/2014

Falling Unemployment Doesn't Rate for Fed

Wall Street Journal 07/05/2014

Fed's Yellen Hedges Her View on Rates

Wall Street Journal 07/16/2014

WSJ's Hilsenrath: Fed Can Be Patient on Rate-Hike Debate After Data

Wall Street Journal 08/02/2014

Yellen Says Job Market Improving, but Noncommittal About Policy Effect

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Activists to Fed: Premature Rate Hikes Would Hurt Poor

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Janet Yellen's first meeting as chairwoman of the U.S. Federal Reserve and press conference, March 18, 2014

03/19/2014

Yellen's emphasizes she will look at a broad range of indicators including inflation, jobless for over 6 months and parttime workers who want full time jobs, and fianncial market developments. The Fed continued to reduce its bond purchases- from $65 billion to $55 billion a month. The Fed said plans were to increase short term interest rates about 6 months after the bond purchases end in the fall of 2014, but to do so very gradually and in small increments. A majority of economists interpreted this to mean the Fed will not increase rates till 2015, especially considering the focus on broad indicators includes other aspects of the unemployment picture that are not included in the unemployment rate.

Grouped Articles

Yellen Debut Rattles Markets

Wall Street Journal 03/20/2014

Fed Cuts Bond Buying by Another $10 Billion

New York Times 03/19/2014

Hiring Rises, but Number of Jobless Stays High

New York Times 04/04/2014

In Tepid Wage Growth, a Potent Sign of a Still-Fragile Economy

New York Times 05/05/2014

Recognizing Bubbles But Still Cautious About Deflating Them

New York Times 09/10/2014

Yellen Goes on Road to Investigate Health of the Jobs Market

New York Times 10/16/2014

Bubbles developing in many countries in 2010-2013

01/17/2009

China being the largest bubble developing in mid 2010. The other bubbles developing in Brazil, Canada, India, and Australia.

Grouped Articles

Central Bankers Hone Tools to Pop Bubbles

Wall Street Journal 07/08/2013

Mom-and-Pop Investors Bolt Emerging Markets

Wall Street Journal 08/22/2013

This Age of Bubbles

New York Times 08/22/2013

Recognizing Bubbles But Still Cautious About Deflating Them

New York Times 09/10/2014

Canada Grapples With Housing Bubble Risk

Wall Street Journal 01/20/2016

Where Will the Next Financial Bubble Be?

BusinessWeek 05/06/2010

The Tech Bubble of 2011-2013

02/10/2011

Grouped Articles

Central Bankers Hone Tools to Pop Bubbles

Wall Street Journal 07/08/2013

Priceline Travels Road Back to High Hit in Dotcom Era

Wall Street Journal 08/09/2013

Recognizing Bubbles But Still Cautious About Deflating Them

New York Times 09/10/2014

Buttonwood: Fifteen years of hurt

Economist 05/09/2015

Twitter as Tech Bubble Barometer

Wall Street Journal 02/10/2011

The Granddaddy of All Bubbles?

BusinessWeek 04/14/2011


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