Money printing turns to money burning

The latest decision on interest rates from the Fed provided no comfort to markets – indeed, it supplied the impetus for the latest sell-off.

927_Markets-634

This was meant to be the year that the lengthy bond bull market finally turned into a full-blown bear market. And for much of the year, markets followed the script. Concerns about rising inflation and the Federal Reserve's gradual retreat from monetary stimulus saw bond yields rise steadily (and thus prices fall). Yet market jitters throughout the year have, in the past six weeks or so, metamorphosed into full-blown fear of a pending slowdown or even recession, sending bond yields down sharply. And the latest decision on interest rates from the Fed provided no comfort to markets indeed, it supplied the impetus for the latest sell-off.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.