Corporate Bond Market Has Doubled Since Financial Crisis

Nuance and framing is important to put the logic of central bankers into perspective. Don’t be alarmed by New York Fed President William Dudley’s comments August 16. Even though the markets sold off on the mention of the potential of stimulative withdrawal, pay attention to the written word, a Bank of America Merrill Lynch report says. That way it’s not as bad as it sounds. But perhaps what is most interesting is not the talk of an interest rate hike, but the Fed’s own recognition that stimulus may be building asset bubbles.

Official concern over stimulus withdrawal spread from hedge funds to central bankers

Perhaps the biggest secret that...