Explanations other than asset price bubbles may be behind the rallies in several asset markets, according to the Federal Reserve Bank of Richmond.

“There are some economic factors that may initially appear to have fueled these rallies. Most notably, monetary policy is accommodative in the United States due to both very low interest rates and quantitative easing,” the Fed said. “This means many developing nations also have pursued easy monetary policies since they officially or unofficially fix their currency to the dollar. Other developed countries, too, currently have easy monetary policies.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.