By Doug Short
The bond market selloff after the FOMC meeting and Chairman Bernanke’s surprising specifics about exiting QE was quite stunning. However, his hawkish position was supported by today’s release by the Bank for International Settlements (BIS) of its annual report. The abstract for opening section, headed Making the most of borrowed time, begins with the following assertion:
Originally forged to describe central banks’ actions to prevent financial collapse, “whatever it takes” has become a rallying cry for them to continue their extraordinary policies. But we are past the height of the crisis, and the goal of policy today is to return to strong and sustainable growth.
