Strategy Video: Are Global Policy Makers Ready for a Fed Hike?
• We are witnessing the most distinct split in monetary policy views that we have seen since back in 2008
• The costs of accommodation from central banks has fanned bubbles in real estate and financial assets
• Wrapping up the G-20 meeting, a number of officials have voiced clear support for the Fed to start the process
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Events and data like rate decisions and GDP can generate volatility through dominant themes like projecting monetary policy and risk taking. However, that doesn't make the data the primary source of fundamental momentum; rather it makes them mere facilitators or sparks to a bigger driver. Monetary policy is one of the most influential and comprehensive themes in the global financial web; and a change may be at hand. Yet, we wouldn't recognize that shift through markets that retain a sense of doubt and resistance to the transfer of risk. In today's Strategy Video, we discuss stimulus and the changing sentiment surrounding the accommodative policy lean used to fuel the the markets over the past six years.
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