6th November 2017
Reversal of the Brexit rate cut and a new head of Fed
This week we finally saw a rate rise, putting an end to what feels like years of scepticism on our part that it would ever happen.
Find out how this and other news this week has effected the financial markets by reading our full Market Commentary.
This week we finally saw a rate rise, putting an end to what feels like years of scepticism on our part that it would ever happen. We remain sceptical overall on the path of future rates and think a lower for longer mindset still persists at the Bank of England. Markets drew many of the same conclusions, and much of the pre-hike excitement evaporated after the details of the decision were made public.
Elsewhere another central bank decision made headlines, when Donald Trump broke with 40 years of tradition and decided not to reappoint Janet Yellenas Chairwoman of the US Federal Reserve. In her place he appointed Jerome Powell who, as is fitting for this US government is both the richest man ever appointed to the post and also the least qualified, being the first ever head of the Fed without an economics degree. Still compared to some of the out-there choices on the President’s shortlist, Powell is considered to be the best choice after Yellen and should mostly continue on the same path.