According to an article published in the Wall Street Journal:
""The Federal Reserve has plenty of items on its list of things to worry about. But a fear that its policies might inculcate another batch of asset bubbles is no longer as high on it.
""The Federal Reserve has plenty of items on its list of things to worry about. But a fear that its policies might inculcate another batch of asset bubbles is no longer as high on it.
But since late May, when Chairman Ben Bernanke first indicated the Fed might start reeling in its bond-buying program, investors have become much more gun-shy about reaching for yield. That is because long-term interest rates rose sharply—while the yield on the 10-year Treasury has fallen since the latest Fed meeting, at 2.64% it is still well above its early May lows.
Shares of real-estate investment trusts, whose steady dividends were drawing in yield-hungry investors, have fallen sharply, for example.
The Fed has, even if inadvertently, bought itself some breathing room on this front. The bigger challenge is pushing the economy into sustainable recovery".
