This year is ending with a flurry of monetary policy activity, following meetings of the US, European and Japanese central banks in December. The communication of the Federal Reserve (Fed, the US central bank) after its meeting on December 18th triggered the largest post-Federal Open Market Committee (FOMC) equity sell-off in three decades. Meanwhile, bonds sold off by the most since the 2013 taper tantrum when the Fed slowed quantitative easing. Did the Fed steal Christmas with its policy pivot? What do central bank communications foretell for 2025?
Transforming complex security challenges into business enablers
2dMonetary policy may well feel Grinchy, but isn’t the real culprit unchecked fiscal expansion? Tightening measures are the consequence, not the cause, of systemic overspending. The lesson: sustainable growth needs fiscal discipline, not Holiday wish lists.