This is an excellent article from Gavyn Davies, the respected macro-economist, writing in his FT blog. For me, this is probably the best article that I have seen on the Fed‘s policy change announced this week. It’s a STRONGLY RECOMMENDED READ, in my view. Check it out!
Here is the FT’s bio profile on Gavyn Davies:
Gavyn Davies is a macroeconomist who is now chairman of Fulcrum Asset Management and co-founder of Prisma Capital Partners. He was the head of the global economics department at Goldman Sachs from 1987-2001, and was chairman of the BBC from 2001-2004.
Reading this article, what came across very strongly was that the US labor market still has a long way to go to return to normality. The second most important point for me was that the bull market with its upward trend in prices was likely to continue.