The Biden stimulus, the Federal Reserve and the everything bubble

William White participated in a panel on 24 March sponsored by the American Enterprise Institute. Moderated by Alex Pollock, the panel consisted of White, Jeffrey Frankel from Harvard University, Fabio Natalucchi of the IMF and Desmond Lachman of the AEI.  White addressed the question of the resilience of the financial system should the “everything bubble” burst. He concluded that, due to ultra easy monetary policy over many years and regulatory shortcomings,  the financial system now had “morbidities” that could increase considerably the dangers of financial instability in the face of shocks.