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  • Fed swimming against global tide of easier rates

    From reuters.com

    Rarely has the world's most important and powerful central bank been so isolated. As the Federal Reserve prepares the ground for another interest rate hike, most other central banks are moving in the opposite direction. And the divergence is widening. No fewer than 53 central banks have eased monetary policy since the start of last year, almost all by lowering rates. Indeed, the pace of policy easing nearly everywhere is accelerating even as the Fed nears its second hike of the cycle. This raises several questions. If the global recovery is firmly rooted, why are so many central banks cutting rates? Can the global ... (full story)

yes the US is sitting pretty while the rest of the world still suffers from the hillbilly mortgages they were conned into buying from them
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As usual, US reacts first and then the rest of the world - some 10 yrs later
Same old same old, its always the same thing and the whole world hangs in the balance while they wait for the FED to dribble more rubbish and kick the can down the road a bit further. Its unbelievable how ridiculous the world has become.
it's not a secret that the FED is a private banking cartel and not the US central bank. They just have an exclusive license to "print" USD.

Unfortunately they control the central banks globally and it's a devious concept how to keep a "strong" USD because it's their best globally profiting product. This is why they pretend to raise the USD interest rate for months just to keep it strong and why 53 central banks have lowered their rates to weaken their currencies which makes the USD look stronger again.
"If the global recovery is firmly rooted, why are so many central banks cutting rates?"

Because charging to park money is more profitable for trade deficits, as well as cheap speculation!
Imagine how many dollars would be printed if the administration controlled both monetary and fiscal policy. Imagine the spending and the inflation.

From all I have read negative rates are more effective as a stimulus than spewing money into the system. Also a higher interest rate makes all the debt more painful making more ignorant voters aware. In short a 0% interest rate for government debt becomes the ideal.
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  • Story Stats
  • Posted: Jun 1, 2016 9:43am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 6  /  Views: 2,106