Fed’s stock market manipulations will lead to ‘another bubble & major meltdown,’ chief strategist tells Boom Bust
Optimism is rallying the markets, riding on hopes of a new treatment for Covid-19. Meanwhile, the US Federal Reserve started buying individual corporate bonds this week to alleviate the intense credit market pressure.
RT’s Boom Bust talks to Todd Horwitz of Bubba Trading about the state of the US stock market and the regulator’s move.
“The Federal Reserve feels compelled not to let a free market price its own asset classes,” Horwitz says, adding that “asset classes will price themselves through a free market.”
He maintains the central bank is violating all the regulations “when they manipulate the rates” and don’t let the market decide. He says: “I’m not a big fan of the Fed, as you can tell, and I think they’re making a huge mistake, which will lead to another bubble and another major meltdown at some point.”
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