Wall Street’s High Hopes for the Fed (CNBC)
May 24, 2013
CNBC interviews Matthew Slaughter of the Tuck School of Business about the federal reserve’s worries that the markets are expecting too much from the federal government.
Slaughter, the associate dean for faculty, the Signal Companies’ Professor of Management, and faculty director of the Center for Global Business and Government at Tuck, tells CNBC that “we've heard a lot of people talk about the fact that Bernanke doesn't care about the stock market. I think Bernanke and the rest of the Fed, I think they do care about the stock market.”
He adds that “the stock market is kind of like the mistress in this marriage between the Fed and the economy. … You're not supposed to talk about it, but it's out there and the Fed understands it, and they know that this is their transition mechanism. and if the market is not getting the right message, that's going to cause chaos.”
Watch the full interview, broadcast 5/23/13 on CNBC.