Beware the ripples of risk in the US market

Ultra-low interest rates have created a veneer of calm in the US, but latent risk bubbles under the surface. We could see a bloody scramble for the exits once the asset-purchasing program ends.

After this week’s US Federal Reserve Board’s monetary policy statement, chair Janet Yellen professed to be unconcerned that the continuation of the US’ ultra-low interest rate environment could lead to asset bubbles. Then she qualified that view.


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