Do Central Banks Have Control?
The European Central Bank announced a second 75-basis-point interest-rate increase in as many months on Thursday, meeting economists’ expectations with inflation riding at a record-high 9.9%. The euro weakened against the dollar, even as Treasury yields softened, as investor concern about future growth seems to be intensifying. Meanwhile, the U.S. economy expanded at an annualized pace of 2.6% during the third quarter. Global Markets Editor Weston Nakamura joins Maggie Lake live in Real Vision’s New York studio for a special edition of the Daily Briefing to talk about the new “widow-maker” trade and the dilemma central bankers face, illustrated by the Bank of Japan’s money-printing into the Ministry of Finance’s yen-buying. Weston discusses in greater depth the emerging conflicts between governments and their central banks here: https://rvtv.io/3DhzACD. And we want to hear from you too – please share your questions, comments, and suggestions! Editor’s Note: Our live chat feature will be unavailable for four to six weeks as we upgrade our video player technology. We apologize for the temporary loss of function. But we assure you the upgrade will more than justify the wait. In the meantime, we will be monitoring the comments section. So, in addition to conversing with your fellow community members, please share your questions there.