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Barry Ritholtz

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.

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