Economics

Central Banks Want the World to Carry On While They Quietly Tighten

  • Fed, PBOC lead shift this week toward tighter stance
  • Yellen says world economy doing well, Draghi growing confident
Steve Goldman, Kapstream Capital portfolio manager, discusses the outlook for Fed and ECB monetary policies.(Source: Bloomberg)
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Central bankers are gingerly trying to take away the punch bowl without interrupting the party.

Led by interest-rate increases by the Federal Reserve and the People’s Bank of China, central banks around the world shifted toward a tighter monetary stance this week. Yet the moves were either so well-telegraphed, or so tiny, and the language about future action so hedged, that there was barely a ripple in financial markets.