There Are Still a Few Tricks Seen Up Central Bankers' Sleeves
- Investors err when assuming policy toolkit is empty: Citigroup
- QE still packing a punch in global stock, bond markets
Have Central Banks Run Out of Bullets?
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If one line of reasoning for the plunge in bank stocks is that monetary policy has lost its punch, investors would do well to recall a law of modern investing: “Don’t fight the Fed.”
As the week draws to a close, some Wall Street economists and strategists say monetary authorities have plenty more tricks up their sleeve -- even after more than 635 interest-rate cuts since the financial crisis by Bank of America Corp.’s reckoning and with central banks now sitting on more than $23 trillion of assets.