Federal Reserve

There's been lots of debate for a long time about whether or not the Fed will ever really slow money printing. Many said it would announce a slowdown today. It did not. This is a big boost for the people who said it would never slow down. Stocks hit a new bubble record in response.

"In a statement following a two-day policy meeting, the Fed said it would continue to buy $85 billion per-month in long-term U.S. Treasuries and mortgage-backed bonds to "help make broader financial conditions more accommodative" to promote a stronger economic recovery. The market was expecting the Fed to start reducing its asset purchases by roughly $10 billion to $15 billion per month."

The policy hasn't worked for years, so best to continue it.

"Virtually every asset class moved higher on the news. Both the S&P 500 and Dow Jones industrial average, which were down prior to the Fed statement, hit record highs after the announcement. The tech-filled Nasdaq rose to a fresh 13-year high."

These are obvious signs of a Fed-induced bubble that keeps getting bigger.

Apparently rents and medical costs aren't inflation.

"U.S. consumer prices barely rose in August, but rising rents and medical care costs pointed to some stability in underlying inflation that could make the Federal Reserve more comfortable trimming its bond purchases."

I wonder who defined those costs out of the inflation statistics.