The FT says the Federal Reserve appears to be 'cornered'

Author: Eamonn Sheridan | Category: Central Banks

An opinion piece in Monday's Financial Times on the US Federal Reserve

  • two weeks ago made a mysterious U-turn
  • signalled that its hiking cycle was over for now
Not only 'mysterious', but a 'perplexing' decision
  • the various measures of US economic performance are almost universally strong
  • The US economy is in rude health - recession fears were, and are, overdone
Says the move was in response to:
  • lingering slack in the labour market
  • a capitulation to markets
And, the risks are significant
  • US corporate debt has reached record highs
  • there remains an inescapable fear that perhaps the Fed's short-term support for an economy that was already in good health opens the door to a surge in volatility later in the year
Here is the link if you would like more (there is plenty more). FT is gated.  

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose