Fed Cognizant of Bubble Risks, Plosser Says

``Mr. Plosser was asked whether recent highs in the U.S. stock market, which just had its strongest year since 1997, was the sign that loose monetary conditions are artificially pumping up markets... Any eventual unwinding of potential bubbles could hurt growth in the future, said Mr. Plosser. He emphasized policy makers' weak forecasting record when it comes to bubbles. Plosser, who opposes Fed bond buying and will be a voter on the policy setting Federal Open Market Committee this year, said he would like the Fed to wind down the program more quickly.'' -- This is a farce, of course; the Fed knows the stock market is a massive bubble.