20 Jun 2014
BoE, Fed policy divergence widens - BBH
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, outlines the widened divergence revealed this week between the Boe and the Fed.
Key Quotes
"The main take away from the FOMC meeting is that the Federal Reserve is not the Bank of England. Hawkish comments by top BOE officials--not just Governor Carney--are encouraging investors to bring forward the beginning of a normalization of monetary policy and a tightening cycle, no matter how gradual. In contrast, the Federal Reserve stuck to its course, despite the recent pick-up in inflation and the improvement in the labor market."
Key Quotes
"The main take away from the FOMC meeting is that the Federal Reserve is not the Bank of England. Hawkish comments by top BOE officials--not just Governor Carney--are encouraging investors to bring forward the beginning of a normalization of monetary policy and a tightening cycle, no matter how gradual. In contrast, the Federal Reserve stuck to its course, despite the recent pick-up in inflation and the improvement in the labor market."