The Fed chair’s testimony to Congress in the wake of the controversial interest rate rise had to be circumspectInterventions by central bank governors to soothe troubled financial markets reach in two forms: the ones that acquire a modest,transitory effect and the much rarer ones that make a genuine dissimilarity.
Mario Draghis “whatever it takes” speech in London in July 2012 fell into the moment category. When the president of the European Central Bank said he was prepared to take on the speculators attacking Italy and Spain, the markets got the message: the ECB was prepared to use unlimited firepower to act as a lender of last resort. The speculators backed off immediately.
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Source: theguardian.com