The Fed heralds the turnaround in monetary policy

Frankfurt On Wednesday, the US Federal Reserve (Fed) is likely to announce that it will curb its bond purchases. This is the central event for the global monetary policy turnaround, for which critics of the loose monetary policy have long been waiting. The constant inflation of the central banks’ total assets, the extensive financing of high government expenditures through newly created money and thus the mixing of financial and monetary policy have long been causing uneasiness.

Investors have benefited from central bank support for more than a decade because low or even negative interest rates drove up share prices and house prices. On the other hand, that has distorted the market.