The Fed sets the impulses and market mechanisms reinforce them, analyzes Handelsblatt editor Frank Wiebe.
Frankfurt Once again, the most powerful central bank in the world determines events on the global stock markets. The uncertainty about the further monetary policy of the Federal Reserve (Fed) in the USA is currently causing a kind of stalemate on the stock exchanges. This was also evident at the beginning of the week, when the leading German index Dax closed at 15,477 points, hardly changed.
Concerns that the Fed could tighten monetary policy even more than feared have increased recently. Share prices no longer reflect the expectation that key interest rates could fall again this year. Investors were also concerned that Fed Vice Chair Lael Brainard, who is seen as more of a soft-policy advocate, is moving to the White House as an economic adviser.
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