Fed--too little, too late;
The Fed's New "Tightening" Plan Is Too Little, Too Late
“The Fed has announced it will finally begin scaling back its balance sheet and raising rates. But the steps announced by the Fed on Wednesday are incredibly timid. The Fed is a long, long way behind the curve.”
“Since 2008, a key component of Fed policy has been to buy up mortgage-based securities and government debt so as to both prop up asset prices and increase the money supply. Over this time, the Fed has bought nearly $9 trillion in assets, thus augmenting demand and increasing prices for both government bonds and housing assets. Moreover, these purchases were made with newly created money, contributing greatly to liquidity and the easy-money policies that have prevailed since 2009.