A senior European Central Bank(ECB) policymaker has issued a fresh warning that the impact of the US Federal Reserve reducing its massive stimulus programme might exceed that of 1994.
Speaking in Brussels, Jörg Asmussen, a German member of the ECB executive board, said policymakers must learn from the mistakes in communicating a shift in US monetary policy in 1994, the Financial Times reports. His comments come as financial markets await the results of a key meeting of the Fed next week which could see a tapering of asset purchases as soon as this month. Asmussen said: "In early 1994, when the US recovery gained strength, the Fed started a tightening cycle and bond markets crashed not only in the US but also around the world. "If spillovers were large in 1994, w...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
