April 4, 2011
The Federal Reserve is on a different monetary planet from the rest of the world, according to Credit Suisse UK Economist Robert Barrie.
At a time when the ECB is expected to follow the lead of many emerging market central banks and raise rates, the US central bank is a long way from hiking rates as it instead debates when, and at what pace, to end quantitative easing, the easy money policy it put in place in response to the financial crisis.
“It’s been clear to us for some time that, rightly or wrongly, the US is on a different monetary planet from the rest of the world,” Barrie wrote in a note to clients.
“What is now becoming clear, however, is the extent to which the ECB has become more decisive at the same time as the UK authorities have become more uncertain,” he added.
This article was posted: Monday, April 4, 2011 at 5:09 am