Central bankers are playing a giant game of Jenga with markets

Forget interest rates or money-printing, central bankers’ most useful tool is expectations management. Tugging at bricks, testing reactions, keeping markets from tumbling. John Stepek explains how to play the game.

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The ECB's Mario Draghi central banking is really quite tough
(Image credit: 2017 Horacio Villalobos - Corbis)

Last week, European Central Bank boss Mario Draghi found himself in the pleasant Portuguese town of Sintra, not far from Lisbon, with his fellow eurozone central bankers.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.