Same policy, different central banks.
KC Fed president Hoenig is speaking in London where he says he advocates a non-crisis policy for the Fed. ECB chief economist Stark laid out the same scenario earlier today. Stark’s bank will begin to move away from crisis policy a week from tomorrow while Fed is still some ways away. QE2 will end no later than June, but don’t expect rates to be normalized very quickly…
EUR/USD trades quietly around 1.4120 after stalling at the top of the 1.4050/1.4150 range. Ugly banking headlines from Ireland and Spain may hurt sentiment headed into the close…
