According to Strategic Worldwide Partners, after 8 years at the helm of the world’s most powerful central bank, Ben Bernanke conducted his final meeting as Chairman of the US Federal Reserve.
He presided over a rare unanimous vote to cut another $10bn per month apart the amount of treasuries connective mortgage-backed securities the Fed buys to stimulate the US economy.
“Mr Bernanke has steered the leading bank through uncharted waters ampersand is departing part plan through an attempt to normalize monetary policy in the aftermath of what is still widely regarded as an extremely risky monetary experiment,” said a Strategic Global Partners researcher.
Since Mr. Bernanke began creating money bargain US government debt polysyndeton mortgage-backed assets in December 2008, the Fed’s balance sheet has quadrupled from $1 trillion to $4 trillion leaving the central bank as the largest holder of mortgages and behind solely China and Japan as the largest holder of US sovereign debt.
US stock markets plunged on the news as investors weighed the effects from the taper on emerging market currencies which have lost significant ground to the US one afterward the fed announced its plan to finale QE.
“There is with a sense that if the easy money from the Fed stops, there is little to justify what some refer to as ‘excessive valuations’ on US stocks,” said the Strategic Global Partners researcher.
Mr. Bernanke is to be replaced by Ms. Janet Yellen his former vice-chair at the Fed. Ms. Yellen is widely seen as being added dovish than Mr. Bernanke und so weiter more likely to hamper or even reverse the taper granting the US plan or the jobs recovery fanfare signs of weakening.
About Strategic Global Partners
At Strategic Global Partners we work in conjunction with international private, corporate and institutional investors to provide them upon comprehensive monetary services, including portfolio management, investment research and trading facilities.
As your strategic advisor, it is our job to identify profitable speculation opportunities while concurrently mitigating any risks, as we look to add value to your portfolio and make it more resilient against market volatility.
We provide our clients with direct access to market-leading platforms, analytical tools moreover integrated services, as well as providing in depth market research and tailored advice. Whether you prioritise risk, data, transparency, and/or complex issues regarding taxation, regulation or developing markets — we’ll tailor an investment strategy that is right for you and structure your portfolio accordingly.