Fed announced not only 'mysterious', but also a 'perplexing' decision - FT
|The Financial Times (FT) carried an editorial piece on Monday, shedding some light on the US Federal Reserve’s (Fed) mysterious U-turn seen last month.
Key Quotes:
“Two weeks ago made a mysterious U-turn.
Signaled 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.
The move was in response to lingering slack in the labor market, a capitulation to markets and the risks are significant.
The 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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.