''The rolling back of the U.S. Federal Reserve's massive quantitative easing program could be a major issue for all economies, according to former World Bank President Robert Zoellick. "[Fed] tapering is a big issue. I think for all economies - U.S., Europe, China, Southeast Asia - the fundamentals still go back to structural reforms," Robert Zoellick, told CNBC Asia's "Squawk Box" on Tuesday.
He added that "The question will be as the Fed eventually moves away from the monetary easing policies, what will be the effect of the [withdrawal of the wall of money that's moved around the world?"
See previous article on this Blog, End of easy money will put pressure on Latin American Currencies.
Time to adjust portfolios?
The global economy is “in the early stages of the recovery of the equity culture and perhaps the end of a 30-year growing love affair” with bonds, Jim O’Neill said earlier in an interview on Bloomberg Television’s “On The Move” with Mark Barton.
''The Federal Reserve is buying $85 billion of Treasuries and mortgage securities each month to support the world’s largest economy by putting downward pressure on borrowing costs. Speculation the central bank may taper its debt purchases in the coming months may damp demand for emerging-market bonds, as well as U.S. debt, said O’Neill''.
He added that "The question will be as the Fed eventually moves away from the monetary easing policies, what will be the effect of the [withdrawal of the wall of money that's moved around the world?"
See previous article on this Blog, End of easy money will put pressure on Latin American Currencies.
Time to adjust portfolios?
The global economy is “in the early stages of the recovery of the equity culture and perhaps the end of a 30-year growing love affair” with bonds, Jim O’Neill said earlier in an interview on Bloomberg Television’s “On The Move” with Mark Barton.
''The Federal Reserve is buying $85 billion of Treasuries and mortgage securities each month to support the world’s largest economy by putting downward pressure on borrowing costs. Speculation the central bank may taper its debt purchases in the coming months may damp demand for emerging-market bonds, as well as U.S. debt, said O’Neill''.
“It’s all part of this big normalization that’s going to happen,” O’Neill said in an interview in London today. “In the process, there could be quite ugly days.”
''The benchmark 10-year Treasury yield rose four basis points, or 0.04 percentage point, to 2.25 percent at 6:14 a.m. New York time. It touched 2.26 percent, the highest since April 2012 and up from a record-low 1.38 percent on July 25".
Ten-year yields, which were last above 4 percent in April 2010, may reach that level “not next week, but in the next couple of years if the U.S. is getting back to normality,” O’Neill said.
Source CNBC, Bloomberg.