Federal Reserve and Bank of England: same struggles, different paths
Althea Spinozzi
The market is not buying the Federal Reserve nor the Bank of England's message. While the Federal Reserve is confident to tighten the economy aggressively in the US without causing a recession, the bond market says that a downturn might be inevitable. Despite a dovish monetary policy meeting in the UK, investors remain of the idea that the BOE will not be able to afford its dovish stance and that it will need to hike rates to 2% by the end of the year.