Survey shows Federal Reserve has too much influence
26 August 2014 New York
Image: Shutterstock
Results from ConvergEx Group鈥檚 US Monetary Policy Survey suggest the Federal Reserve is 鈥榖ehind the curve鈥�.
The survey explores financial industry sentiment about the Federal Reserve, Chairwoman Janet Yellen and the US monetary policy heading into the annual economic symposium at Jackson Hole, Wyoming.
Chairwoman Yellen received a 鈥楤鈥� grade from financial professionals, but fewer than half 949 percent) of respondents approved of the job the Federal Reserve is doing.
Fifty-nine percent described the Federal Reserve as being 鈥榖ehind the curve鈥� with respect to interest rates, while 32 percent say interest rates are where they should be. Only 38 percent say they are 鈥榗onfident鈥� or 鈥榲ery confident鈥� that the Federal Reserve will make the right policy decisions.
A majority of 66 percent said the Federal Reserve has too much influence on capital markets.
Nicholas Colas, ConvergEx Group鈥檚 chief market strategist, said: 鈥淭he financial industry likes Yellen, but believes she leads a central bank that is overexposed and behind the curve.鈥�
鈥淭here鈥檚 tangible fear among investment professionals about the unwinding quantitative easing and the painful increases in rates that will follow.鈥�
鈥淥ur survey shows that [Yellen] is seen as a strong leader, and investors do not want to scrap the structure of the [Federal Reserve], but there is real concern about what happens next.鈥�
The survey explores financial industry sentiment about the Federal Reserve, Chairwoman Janet Yellen and the US monetary policy heading into the annual economic symposium at Jackson Hole, Wyoming.
Chairwoman Yellen received a 鈥楤鈥� grade from financial professionals, but fewer than half 949 percent) of respondents approved of the job the Federal Reserve is doing.
Fifty-nine percent described the Federal Reserve as being 鈥榖ehind the curve鈥� with respect to interest rates, while 32 percent say interest rates are where they should be. Only 38 percent say they are 鈥榗onfident鈥� or 鈥榲ery confident鈥� that the Federal Reserve will make the right policy decisions.
A majority of 66 percent said the Federal Reserve has too much influence on capital markets.
Nicholas Colas, ConvergEx Group鈥檚 chief market strategist, said: 鈥淭he financial industry likes Yellen, but believes she leads a central bank that is overexposed and behind the curve.鈥�
鈥淭here鈥檚 tangible fear among investment professionals about the unwinding quantitative easing and the painful increases in rates that will follow.鈥�
鈥淥ur survey shows that [Yellen] is seen as a strong leader, and investors do not want to scrap the structure of the [Federal Reserve], but there is real concern about what happens next.鈥�
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