monetary policy Tag

As the Federal Reserve prepares to begin paring the size of its $4.5 trillion balance sheet next month, analysts at Deutsche Bank on Wednesday warned that what they have dubbed the “great central bank unwind” is one of several candidates for creating the next financial crisis. “When looking for the next financial crisis, it’s hard to escape from the fact that we’re seemingly in the early stages of the ‘great unwind’ of global monetary stimulus at the same time as global debt remains at all-time highs following an increase overRead More
Spot gold extended gains after minutes of the Federal Reserve’s last meeting showed that while officials expect further interest-rate increases soon, they said “it would be prudent” to wait for evidence that a recent slowdown in economic activity had been transitory. “Most participants judged that if economic information came in about in line with their expectations it would soon be appropriate for the committee to take another step in removing some policy accommodation,” according to minutes from the Federal Open Market Committee’s May 2-3 gathering released Wednesday in Washington. Political turmoil inRead More
Slowly but surely, a bruised and battered global economy now appears to be shaking off its deep post-crisis malaise. If the International Monetary Fund’s latest forecasts are borne out — an iffy proposition, to be sure — the nearly 3.6% average annual growth in world GDP expected over the 2017-2018 period would represent a modest uptick from the 3.2% pace of the past two years. Fully a decade after the Great Financial Crisis, global growth is ­finally ­returning to its 3.5% ­post-1980 trend. But this round trip hardly signals thatRead More