from Zero Hedge
In recent days there was speculation whether Powell would acknowledge frothy investor mentality as observed by the daily insanity on Robin Hood and other daytrading platforms, resulting from the massive surge in central bank liquidity resulting in a 40% spike in stocks, and whether it would prompt the Fed to at least concede that it is in the process of blowing another bubble. As a reminder, just yesterday SMBC Nikko analyst Masao Muraki said that “soaring risk asset prices (ie imbalances) have reached a point where the Fed may be forced into some kind of action.”
Alas, whereas this question did come up during the FOMC press conference, here is what Powell did say:
“We’re not focused on moving asset prices in a particular direction at all, it’s just we want markets to be working and partly as a result of what we’ve done, they are working.”