On Wednesday, May 13, the U.S. Federal Reserve (Fed) announced that the much heralded economic recovery would be "slower than expected". It also announced that it would not lower interest rates below zero.
These two pieces of bad news say a lot about the state of the world after containment. These announcements were enough to push the markets back down.
Many of us now think that central banks are leading the way and covering the back of the markets with their monetary injections. I've been thinking a lot about this and I'm thinking that central banks may be losing control.
Is the Fed letting go of the world economy ?