Janet Yellen: ‘There Is No Put When It Comes to the Stock Market Ever with Respect to the Fed’

EXCERPT:

YELLEN: “Well, look, there's no put when it comes to the stock market ever with respect to the Fed. Although if risk to financial stability arise -- and let me be clear, I do not yet see those in play and hope they don't come into play -- the Fed has a range of liquidity facilities that I would expect them to deploy as they did in March of 2020 after the pandemic. You know, I think that the tariff policies and the uncertainty they're creating create the most difficult possible situation for the Fed, because the Fed is going to focus squarely on its two congressionally mandated objectives, price stability and maximum employment. And inflation's come down. It's not quite at the Fed's target. But there's good reason to believe that we're going to see a surge in inflation, at least for a while.”