How the US is fighting the war on liquidity

Trade wars continue to dominate headlines. It is often the explanation behind any sell-off.

Clearly, this is a concern. But this overriding focus risks missing the big picture, the other 'war' raging; the sucking sound of liquidity taken from markets. Having won the war on deflation, US central bankers are now taking money out of the system.  Global growth is slowing down a tad, but still nicely above trend. So why should investors be concerned? Precisely because it is US-led and no longer synchronised. Driven by a late-cycle fiscal stimulus, economists are upgrading their assessment of the US economy. We see inflation slowly picking up and have heard the Federal Reserve ...