Stocks surged at the open Thursday and kept climbing through the morning, as the market digested the Federal Reserve's decision to buy $600 billion in long-term Treasury bonds. Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“It looks like the Fed is looking to raise asset prices and the key asset price they want to raise looks to be the stock market,” Cashin told CNBC. “If the stock market looks good, maybe people might start spending again and that’s the gamble Fed is taking.”
However, Cashin said the Fed’s quantitative easing process is driving the dollar down, which may result in tariffs or currency wars.
“[Bernanke’s] walking a real tightrope; but for now, it’s had a beneficial effect on stocks,” he said.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Oct. 29, 2010)
More Market Intelligence:
- Reposition Now for 'January Bounce': Stock Picker
- How Fed Easing Really Works
- 'Fast Money' Traders: Fed Put A Floor Under 3 Stocks?
CNBC Data Pages:
Major Earnings Coming Up:
No immediate information was available for Cashin or his firm.