Economists have seen this all before as fundamentals deteriorate, central banks act. It happened in third quarter 2012. With earnings growth expectations negative, the Federal Reserve stepped in with a third round of quantitative easing supplemented by Operation Twist for an unprecedented $1 trillion of stimulus per year. U.S. markets opened 2013 strong and never looked back. And now it's happening across the globe. The Fed set the tone by holding steady on rates following both its September and October meetings, and the European Central Bank declared its intention to stimulate big. But it was the People's Bank of China that upped the ante with two significant rate cuts in recent weeks, sparking a surge in global markets.
"This central bank-hosted party is most definitely not a celebration of economic prosperity; inflation, GDP and corporate profit expectations continue to be cut by Wall Street analysts, the International Monetary Fund and the World Trade Organization. Should the old adage "don't fight the Fed" be expanded to "don't fight the global central banks"? It sure looks that way given the latest explosive equity rally in the face of slowing global growth", says Voya Global.


ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve
BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects
Kevin Warsh Advances Toward Fed Chair Role Amid Political Tensions
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty
BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build
RBA Rate Hike Outlook: Impact on AUD/USD and ASX 200
ECB Rate Outlook: Ceasefire Eases Pressure but Hikes Still Expected in 2026
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 



