January 2016

[admin]

If not a lack of buybacks, it's the Fed that dunnit..

An increasingly messy divorce between market participants and monetary policymakers might be responsible for the market turmoil in 2016, according to Richard Koo. The "January correction was driven by realization that rate hikes could come faster than expected," he claims... He says the Federal Reserve's desire to calm markets prior to liftoff quickly gave way to rounds of commentary beating market participants over the head with the idea that the pace of tightening would be less gradual than they anticipate.

Koo: The Fed's Communication Shift is Behind January's Selloff - Bloomberg Business