Capital Flows Hijack The Fed

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This Big Jump In Global Capital Flows Is Unusual But Not Without Precedent

 

Whether or not you believe that Central Bankers have altered course and veered away from quantitative tightening, the jump in cross-border flows since the December market correction is significant and, so far, has had a far bigger monetary impact than the Fed’s slated policy change. What’s more, this cross-border flow driver is not without precedent. Previously, it has sparked a sizeable outperformance from both cyclicals and non-US stock markets.

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