Comments from Fed Vice-Chair Fischer
Fischer's comments mostly focus on the financial system and stability.
- Corporate sector 'notably leveraged'
- Calls for 'close monitoring' of risk appetites
- Fed still lacks enough info about shadow banking
- Equity P/E levels are near the top of historical levels
- Financial vulnerabilities 'moderate' compared to past periods
- High asset prices may lead to future stability risks
- Auto and student loans deserve scrutiny
There are no real comments on the outlook here but I'm partial to the idea that recessions aren't caused by inflation anymore, they're caused by financial markets and side effects from markets, so that's where central bankers should be focused.
