Don't fight the Fed

Anatole Kaletsky | GaveKal | 19 September 2013

So it was, after all, a storm in a teacup. Financial markets around the world have been going through a series of "taper tantrums” since Ben Bernanke first mentioned the idea of gradually reducing or tapering the Federal Reserve's asset purchases. Throughout this four months, I have argued that financial markets had grossly exaggerated or completely misunderstood the significance of Bernanke's comments. This has turned out to be the case, as evidenced by the huge moves in share prices, curren...