The Fed’s hope was that quantitative easing would stimulate economic growth. But a former senior economist for the Fed believes it has done the exact opposite.

Speaking at the Mauldin Economics Strategic Investment Conference, Dr. Lacy Hunt, the executive vice president of Hosington Investment Management and former senior economist for the Dallas Fed, said quantitative easing has created “significant unintended consequences.”

The Worst Expansion in US History

“What the Fed did was, they said to the world we are undertaking quantitative easing so we can boost the stock market… and the stock market will then produce a wealth effect and invigorate the economy,” Hunt said.

While the Fed has increased its balance sheet by $3.57 trillion since 2008, and the S&P 500 is up 255% since 2009, Hunt says, “this is the worst expansion in U.S. history.”

Source: BCA Research

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