LOL, Yellen says next time the Fed should raise interest rates earlier to avoid a housing crises. More disturbingly, she goes on to say that she had not appreciated pre-GFC 'how important Fed short-term interest rates were to high-leveraged financial institutions, like broker-dealers.'
So it is good bye to the Greenspan put. That fella Conza will be unhappy that his beloved Austrian economics is going mainstream. No more militia men when the Fed becomes the new venerable leader?
Sounds like the Fed might be learning organisation after all. Happy days.
Fed should pop next housing bubble, Yellen says
Higher rates might have slowed appreciation in home prices
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) - The Federal Reserve should consider raising interest rates earlier to prevent asset bubbles from getting too big, San Francisco Federal Reserve President Janet Yellen said Friday, in a notable departure from long-term Fed consensus that monetary policy should not be used to prick asset bubbles.