“Are Central Bankers About To Lose Control?” The WSJ Asks And Citi Answers – 12.27.2017

 

  • In an article published by the WSJ today, which was originally titled “Are Central Bankers About to Lose Control?” but after some shoulder taps was renamed to the far more neutral “Can Central Banks Keep Control of Interest Rates?” author Jon Sindreu looks at the current Goldilocks state of the market, in which global growth is “coordinated and widespread” yet inflation remains absent preventing central banks from hiking rates rapidly, resulting in “elated investors” who nonetheless are haunted by a question “will interest rates develop a mind of their own?”
  •   The response to this question will also answer the overarching question posed by the WSJ: are central bankers about to lose control after nearly a decade of artificial vol suppression and asset inflation on the back of $15 trillion in excess liquidity. The goalseeked response that the WSJ is looking for, is also the result of a Blackrock report released last week titled “The real story behind low interest rates.”

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Source: zerohedge.com