FTSE: An increasingly bearish MACD as the index drifts towards this summer’s lows. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

Fed explains why it cut rates October 29-30th FOMC Despite strong labour market and growing economic activity

The Fed Funds target now stands at 1.5 to 1.75 per cent because of global developments and muted inflation pressures, business fixed investment and exports remaining weak; two committee members felt there was no need for a 25 basis point cut. They also admitted that there were uncertainties around their current outlook for the US economy.

Published yesterday, the European Central Bank’s stability report showed them once again defending their negative interest rate policy and QE. This, the first with Christine Lagarde at the helm, against a background of dissent at the top, so much so that Germany’s new board member Isabel Schnabel told her nation’s economists to back off criticising the ECB because they threatened the euro. They also warned that non-banks may have taken on too much risk because of ultra-low interest rates.

Financial Markets and Political Commentary

 

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