Central Bankers on the Ground
Markets are in turmoil again, following the Federal Reserve’s indication of an exit from quantitative easing toward the end of the year. Regardless of how markets ultimately respond, recent developments have exploded the myth that central bankers are disinterested technocrats, loftily independent of the politics of their time.
https://prosyn.org/8UjIyl8
NEW DELHI – Markets are in turmoil once again, following the US Federal Reserve’s indication that it might reduce its bond purchases toward the end of the year. The intensity of the market reaction was surprising, at least given the received wisdom about how the Fed’s quantitative-easing policy works. After all, the Fed was careful to indicate that it would maintain its near-zero interest-rate policy and would not unload its bond holdings.