Economics
Fed Should Draw Line on Covid Stimulus, JPMorgan’s Michele Says
- Calls Jackson Hole a good venue for Fed to assert independence
- Sees ‘moral hazard’ in continuing ultra-accomodative policies
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Federal Reserve policy makers at the Jackson Hole symposium should call an end to the emergency policies put in place to aid in the recovery from the pandemic that are now essentially “underwriting” government spending plans, according to Bob Michele.
“We’re well past the crisis,” Michele, JPMorgan Investment Management’s chief investment officer, said Wednesday on Bloomberg TV’s Surveillance show. With lawmakers in Washington moving ahead on a $3.5 trillion budget proposal and a separate $550 billion infrastructure bill, there’s “a moral hazard there where you’re looking at the Fed underwriting a lot of government policies,” he said.