Wyn Thomas - Axys Investment Management

Weekly Market update 19th December 2016

FED KEEPS FOCUS
This week all attention has been on the US Federal Reserve, which decided to raise interest rates on Wednesday. The continued strengthening of the
US economy is at odds with most other developed markets, where low rates and quantitative easing are still the norm. The challenge for the US central
bank, and indeed all central banks, is that they are mostly running on empty. Everything that could be done, has been done, and yet economic growth
is still modest at best. This is ok assuming things stay as they are, but should there be another recession there will be little monetary policy can do to
react. For this reason, we should be envious of the US being able to take the first steps towards interest rate normalization. Read More….