Fed risks 'Japanification' - Shaun Richards [Video]
|With central banks occupying the prime theme in the markets, we talk about policy and expectations with Shaun Richards from Not A Yes Man Economics, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Highlights:
“In the current environment a rate hike surprise is unlikely. Bundesbank used to surprise markets about 20 years back.”
“Fed should have started tightening this time last year.”
“In essence, asset prices are what Fed intends to support.”
“Even from the ultra low level rates in Japan, the rates fell further.. This is dangerous. They have lost control of the Yen.”
“BOE’s Weale changed his mind yesterday (hawkish to dovish) and today we had a good GDP. But we need to be careful because this initial release is like a forecast than a actual figure.”
“Weale is at the far end of his tenure at BOE.. wanted rate hike but never got one and is now calling for easing.”
“There was slowdown in UK which happened earlier, way before Brexit issue.”
“BOE shouldn’t do asset purchases as gilt yields are already very low. Weale got in a mess of BOE independence as he said it is aligned with the treasury.”
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