Guggenheim’s Minerd Says Markets “Addicted” to Central Bank Stimulus

Economy6 minutes ago (Oct 18, 2021 18:30)

2/2
© Bloomberg. Scott Minerd Photographer: Patrick T. Fallon/Bloomberg

(Bloomberg) — Guggenheim Partners Chief Investment Officer Scott Minerd said markets are becoming addicted to central bank stimulus, which he said is playing a role unlike any other in history.

The unprecedented stimulus the Federal Reserve unleashed on the U.S. economy during the Covid-19 pandemic, as well as similar central bank moves, has thrust monetary policy into uncharted territory, accounting for factors such as income and gender inequality, Minerd said Monday at the Milken Institute Global Conference.

“For the time being we’re just addicted to this,” he said. “Central banks are functioning in a role that they were never designed to do,” he said, adding that central banks are now “running the markets.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.