The Federal Reserve is sketching out plans to prevent an abrupt contraction in its massive balance sheet next year, when some $500 billion in bonds expire and risk disrupting markets and the U.S. economic recovery.
World shares tested record highs on Friday as hopes of more easy money from top central banks pushed Japan's Nikkei past 20,000 points for the first time in 15 years and European stocks reached similar heights.
The dollar rose for a second day on Monday, building on a modest comeback from a two-week decline on the back of data suggesting that the U.S. economy might be stabilizing following a recent soft patch.
Overnight we saw several central banks meeting globally on the heels of yesterday's FMOC report. It featured a mixed bag of results with Brazil raising rates to curb inflationary concerns, Russia cutting her dramatically inflated rates aimed at currency support from 15% down to 13.5%, and Japan standing pat at her current monthly quantitative easing amount of 80 trillion yen.