Why the Fed and other keen observers are more concerned about future liquidity than today’s global growth, inflation or unemployment. New Federal Reserve Chair will have his hands full.
"Not all central banks are in sync any more, as the shock of the financial crisis recedes into the distance. Last week, the European Central Bank unveiled a “dovish taper”. That is, it began to reduce the amount of money it is spending on asset purchases in a bid to stimulate the European economy. All else equal, that should mean higher rates and a stronger euro, as the ECB no longer works so hard to keep them down."