“Under no circumstances should you listen to the Fed. Cover your ears and maybe hold your nose,” says a money manager.
by Jeff Cox
Japan’s failure to stimulate much with its latest stimulus serves as a reminder of how few tools global policymakers have left to drive growth.
Fiscal and monetary authorities announced more plans over the past few days to spur inflation in hopes of driving broader economic hopes. The government on Tuesday announced fiscal stimulus amounting to $274 billion, while the Bank of Japan late last week said it would nearly double its exchanged-traded fund purchases to nearly $60 billion.
They were rewarded with a stronger currency, a sea of red in both global equity prices and bond yields, and a market that generally was disappointed that Japanese leaders were not willing to do more to jump-start the long-moribund economy.