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Mark Carney avoids trap that caught Ben Bernanke at the Fed
Bank of England governor Mark Carney is nothing if not a fast learner. Last month Federal Reserve chairman Ben Bernanke illustrated how panicky the markets can be when the cost of borrowing looks like climbing. It was widely considered naive of him to answer a straight question with a straight answer when he bluntly stated that the Fed must, at some point, stop printing extra dollars at the rate of $85bn (£56.2bn) a month. The markets, in essence, took his words to mean that ultra low borrowing costs were coming to an end. It sent the cost of long-term borrowing, as measured by US Treasury bond yields, ... (full story)