The Fed's attempts to manage risk assets could have severe ramifications, argues the FPA Crescent manager.
Speaking in reference to the U.S. Fed's monetary policy and the increasing indebtedness with greater Treasury issuance and what implications it will have on asset classes over next three to five years, he said, "We are living in a grand experiment. We have never lived through times like this before. We have never executed policy in this fashion, like we are doing now. And how it ends is anybody's guess, but just in simple terms, I think by avoiding the ability to clear prices at a normal low level as historically has happened in the past, the Fed's trying to step in and manage risk assets to too great a degree. I don’t think it's going to end well."
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