Econintersect: Gavyn Davies, Fulcrum Asset Management chairman, and Financial Times Senior Investment columnist John Authers discuss in the video below the markets’ reactions to the Federal Reserve Bank’s pronouncements last week. The discussion comes with a headline: “Turning point for QE supertanker.”
Video available after the Read more >> jump.
This interview was recorded 20 June (Thursday) the day after the afternoon press conference that occasioned the sudden market decline. At that time the conclusion was that the market reaction was over done and the market interpretation that QE was nearing an end was not likely to be correct. Gavyn Davies suggests that the chances that the current $85 billion per month QE could continue longer than expected was greater than the risk it could be ending soon and early. Data is reviewed that discusses the trends in U.S. employment and inflation/deflation.
