8 Dec 2014
Fed warning signs – BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that the Federal Reserve is not the central bank for the world, but of the United States.
Key Quotes:
“Still, it recognizes its importance. It had revealed its intentions to investors months before it was going to slow its asset purchases. It even waited a few months after it had appeared to signal the beginning of its tapering”.
“It has been warning investors since the beginning of the year that after an unspecified “considerable period” after the long-term asset purchase plan was completed, it would raise US interest rates”.
“The clearest signal from the Fed’s leadership is that this process will likely begin around the middle of next year. Of course, it is dependent on the data but barring a significant surprise, those with potential funding or currency mismatches, have as much warning as can reasonably be expected”.
Key Quotes:
“Still, it recognizes its importance. It had revealed its intentions to investors months before it was going to slow its asset purchases. It even waited a few months after it had appeared to signal the beginning of its tapering”.
“It has been warning investors since the beginning of the year that after an unspecified “considerable period” after the long-term asset purchase plan was completed, it would raise US interest rates”.
“The clearest signal from the Fed’s leadership is that this process will likely begin around the middle of next year. Of course, it is dependent on the data but barring a significant surprise, those with potential funding or currency mismatches, have as much warning as can reasonably be expected”.