Sunday, December 02, 2012

Déjà Vu All Over Again

In this month’s Global Central Bank Focus, Tony Crescenzi suggests that Congressional cooperation is necessary to help the Federal Reserve heal the ailing U.S. economy, Andrew Bosomworth urges the EU to consider fiscal and political integration in order to survive, Lupin Rahman explores the prospects for continued growth in emerging markets and Ben Emons discusses the use of monetary policy to influence exchange rates.

The re-election of President Obama reinforces the likelihood that the bond market will remain anchored for quite some time to come by the extraordinary degree of monetary accommodation that the Federal Reserve is providing. T

his was likely to be true no matter who won the election, but President Obama’s re-election ensures that the Federal Reserve will remain chaired by an individual who will favor keeping in place a highly accommodative stance on monetary policy if Chairman Ben Bernanke leaves the Fed when his term expires in January 2014, as now appears likely.

The printing press will keep rolling, in other words.

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Original content Bob DeMarco, All American Investor