More good stuff from the ‘Queen of Markets’, Jill De Quincey. Today, she talks about the Fed’s decision to sit back for awhile and their ‘hands off policy’. She gives us a nice point of view from an outsider’s perspective. I particularly like the emphasis on too much Europe and the goings on in England, something the world is watching closely.
It cannot have escaped the notice of readers that global stock markets suffered a jarring fall on Monday, causing Ben Bernanke’s committee to announce a support operation – sorry, that should read “a reaction to their downward revision of prospects for the US economy”. Eurozone problems may also have played a role in the decision, although that was not made explicit.
CNBC naturally spent the rest of the week telling their viewers every five minutes that there is now an irrevocable promise that dollar interest rates will remain nailed to zero for the next twenty four months. In the UK, where there is no TV channel controlled by the banking community, it was necessary to read the Financial Times to discover what they want you to believe.
A typical comment, presented as reporting rather than editorial opinion, was “the US Federal Reserve has attempted to tackle a rapidly weakening economy by freezing short-term interest rates for two years”.
We have come to accept that there are probably few investors or traders who
