If the Fed does not tighten monetary policy soon, it will provoke a sharp rise in stock indices next year, said managing director of Stifel Barry Bannister. If policy stance remains gentle - low interest rates, continued asset buyback program - in a year and a half, the S&P 500 could jump 45% and the NASDAQ 64%. This would be another stock market bubble that could lose 10 years. Curbing inflation through aggressive rate hikes could prevent this situation, the expert said. However, a hardening of the coronavirus pandemic and any disruption in economic development could prevent a policy shift. Bannister believes that the Fed is pursuing a populist style which, as history shows, pushes the wrong policies and makes things worse. Aggressive policy is the only way to prevent the formation of a bubble, the expert stresses.