Does the Fed Set Interest Rates - Professor Aswath Damodaran

Does the Fed set interest rates? Prof. Aswath Damodaran sets the record straight.

[dylanmartinez]

Where was this guy all of this time, currently watching the valuation serie, he's a genius

[petrithalili]

I'm just keeping his videos to my favorites browser

[apothe]

Aswath is right, investors this year are *Obsessed* with fed rate hikes

[kalky]

I have many doubts and questions. Does not the Fed through the overnight Fund rates and fractional reserve system influence the money supply? I agree with you that both growth and inflation influence the long tail of yield curve. However, central banks do influence the short term rates, don't they? Central banks bought 11 trillion of treasuries, shouldn't that influence the liquidity in the market just a tad?
Let assume you are right. We had eight years of low growth and no inflation. Why the hell then we have a massive valuation of the stock market by any historical mean? Should not low inflation and low grow crash share prices? Companies margin get lower and level of bankruptcy increase. However, I didn't see many of this happening.
We can take your argument and push it further. So if tomorrow the Fed increase the Fund Rates by 500bps, yield curve should not change and share prices should not be impacted because "it is only grow and inflation that impact interest rates".
I am having hard time to believe it. Really hard. I see a bubble in every asset I look at. I see level of debt around sky rocketing and I do worry.