- Low rates amid boom time assets sets stage for bubbles over next 2-3 years
- Asset prices to potentially play a bigger role in Fed policy
- Yellen's view is not far from median Fed expectations for rate hikes
- Balance sheet run-off will remain in background as rate rise
I don't think he's suggesting a boom time for the US (though I wouldn't put it past him) and there's plenty of evidence that the average US citizen isn't going to be splashing the cash just yet. On the other hand, confidence breeds confidence and once the ball gets rolling then bubbles will be what the Fed will be watching for...hopefully
