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Kansas City Federal Reserve President George joins the 'bleeding obvious camp' mulling she is "mindful that rate cuts could increase financial instability which Fed has limited ability to counteract."

Fed George

Mindful that rate cuts could increase financial instability which Fed has limited ability to counteract

With President Trump calling for rate cuts and most of Europe on negative rates despite the DAX and CAC40 at record highs and the S&P 500 just off it the risk factors is plainly obvious. We have Brexit, Tradewars and Mid East geopolitical headwinds for all to see.

This week former Bond King Bill Gross commented again on 'fake markets' saying the boost from negative interest rate yields may have reached an end, warning that lower rates won't boost stock markets further when he released his first investment outlook, “The Fixx”, since retiring from Janus Henderson this year.

More comments from George:

  • US economy is generally performing well
  • Moderation in economy this year is in line with outlook
  • Not sure that monetary policy is the appropriate tool to offset weakness in manufacturing and business investment
  • Corporate debt continues to rise to high levels and lower capital levels at largest banks could be costly to employment and growth
  • Will remain attentive to incoming data for signs of downside risks to the US economy

Source: Reuters

From The Desk of TradersCommunity

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