Near-term Central Bank Intervention?
Why Read: Because with what is happening in the world and country specific economies today, can more quantitative easing in many countries be far behind?
Featured Article: An article this morning says that analysts are looking for Central Banks to make announcements next week - in particular the European Central Bank, and perhaps the U.S. Federal Reserve.
Commentary: Watch closely for this, particularly in light of today's economic news. Watch even more closely for this if this morning's significant U.S. equities markets drop continues over the course of today and into early next week.
There arguably is a highly interesting disconnect between post-2008 quantitative easing, which should be inflationary in normal times, and the posted rate of inflation - particularly in the United States. At some point it has to become implausible to believe that quantitative easing can 'save the ship', and if and when that point comes 'look out below'.
Are Looking For Major Central Bank Action Starting Next Week
Source: Business Insider, Simone Foxman, June 1, 2012
Reading time: 4 minutes