The US Federal Reserve has allowed ... its credibility fall "below zero". Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility." [more inside]
posted by three blind mice on Jun 27, 2008 - 56 comments