The Fed: Fed gets earful from Fidelity executive for roiling global financial markets

Bloomberg News/Landov
Jerome Powell, chairman of the U.S. Federal Reserve, and his colleagues were criticized for roiling markets.

The Federal Reserve has been insisting that its plan to shrink its balance sheet would be like “watching paint dry.”

On Friday, one Wall Street expert politely told them that this view was beyond ridiculous.

Lisa Emsbo-Mattingly, director of research in the global asset allocation group at Fidelity Investments, said the turmoil experienced by financial markets in the fourth quarter was the unwinding of search-for-yield investments put in place by investors as a result of global central bank asset purchases.

Global investors had been trained to expect that central banks would be buying assets.

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