Have your summer vacation all booked? Hoping to ignore your phone for a while, feeling safe in your investments and secure in the knowledge that the world’s financial authorities aren’t planning any surprises just yet? Think again.
U.S. Federal Reserve Chairman Ben Bernanke made it clear in congressional testimony this week that the central bank could very well entertain a change in policy sooner than many had predicted. That would mean providing less stimulus to the economy by cutting back on its bond buying program.
The result was an unsettling bout of volatility, with Treasury yields jumping while stocks slid, as investors feared the Fed’s support might start to recede.