The Economy Is No Runaway Train

Alan Greenspan called it irrational exuberance. But sometimes it looks more like exuberant irrationality. The Federal Reserve raises short-term interest rates and the stock market goes up, not down. Despite five tightening moves, rates on government securities move lower, not higher. As for the real economy, it careens ahead at a 6% to 7% growth rate, despite efforts to rein it in. Confusing musing about productivity and wealth by the Fed chairman leave investors cross-eyed. Are things a bit out of control? Or do they just seem to be?

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