Troy's Lyon: Central bankers are 'prisoners in their own cells'

Central bankers are backing themselves into a corner in their attempts to fine-tune unorthodox monetary policies, according to Troy Asset Management's Sebastian Lyon.

Lyon (pictured), manager of the £2.6bn Troy Trojan fund, pointed to market activity in June and July as evidence of the difficulties now facing policymakers. Federal Reserve chairman Ben Bernanke triggered a cross-asset class sell-off in June when he signalled a potential slowdown in quantitative easing, before seeming to tone these comments in July. Lyon said Bernanke's attempts to sooth investors' nerves, while successful, illustrate the problems of exiting the era of ultra-loose monetary policy. "Risk off made way, once again, for risk on [in July]. Central bankers are in danger...