One way to support the economy is to make money cheaper and incentivise lending by cutting interest rates, the mandate of central banks. The chair of the most important among them, the U.S. Federal Reserve, hinted as much on Tuesday when he pointed to a fragile labour market despite a resilient U.S. economy.
There is a breathlessness to news and market drivers at present, and it is hard to keep up. Be it the daily swing in trade relations between the United States and China which started off at the weekend ugly, turned conciliatory Monday and back to ugly again yesterday.
After a hectic few days, it appears that investors are still assessing and reassessing the potential consequences of the Middle East peace process, the ongoing attacks on Ukrainian and Russian oil installations, and the possibility of reigniting the trade war between the world’s two economic behemoths.
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