A Change in Tone Amongst Central Bank Language Forewarns an End to the “Good Times”
by Phoenix Capital Research
As we’ve noted in recent articles, the US Federal Reserve has blown another bubble in stocks and facilitating the exact same risk-taking behavior that brought about the 2008.
The Fed realizing that it’s done this, which is why it’s now trying to manage down expectations of future stimulus (see the multiple suggestions from Fed officials that the Fed might reduce QE before hitting its unemployment target).
The Fed is not the only Central Bank to have shifted tone.
Chinese authorities took a step to ease potential inflationary pressures Tuesday by using a key mechanism for the first time in eight months.