How safe are savings as Fed rushes in where ECB fears to tread?
by Guardian Staff from Economics | The Guardian on (#3SEHC)
With the base rate in the eurozone still at 0%, funds are flowing back to the US using a myriad of financial instruments
While governments around the world contemplate the fallout from Donald Trump's trade war with China, banks are wrestling with central bank moves that are likely to have a much more fundamental impact on the global economy.
On Wednesday the US Federal Reserve pressed ahead with its policy of raising interest rates, adding a seventh quarter-point rise since 2015 to leave the base rate at 1.75-2%. The Fed also pledged to continue selling back to the private markets loans it bought as part of a vast $4.5 trillion quantitative easing programme.
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