Why the fed still affecting global economic??

September 18th, 2014, 05:24 AM

I'm still do not understand why the fed still affecting global economic??
How come?
If the BRICS growing, do the fed still have influence in economic?

September 22nd, 2014, 08:51 AM

Well my opinion is that until Fed start raising the rates, there still is a great flow of liquidity on the market.
Fed is not the only central bank that is increasing the liquidity on the market, BCE, BoE and BOJ are doing pretty much the same trying to raise inflation and sustain economy.

In this kind of scenario all this liquidity have to find the best possible allocation and it means will go where rates are higher or performance are higher.
So stock markets and emerging markets are taking benefit of the monetaries policies of the central banks, in particular emerging markets have an inflow of foreign liquidity at a low price.

Everything seems to be valued not for what it is but for the yield it can bring in the short term.

Why the fed still affecting global economic??

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Why the fed still affecting global economic??