Barry Ritholtz, Columnist

Fed Is Misled by Wealth Effect

The Federal Reserve's decisions on monetary policy have been misguided because of its excessive focus on the wealth effect.

February 6, 2014 at 3:09 PM UTC

By Barry Ritholtz

Barry Ritholtz is a former Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”

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When will these guys ever learn that maybe, just maybe, these Fed policies aimed at targeting asset prices at levels above their intrinsic values is probably not in the best interests of the nation?

-Dave Rosenberg, chief economist and strategist at Gluskin, Sheff