Russia intervenes in the ruble to try to slow a currency meltdown, plunging oil prices cause stress in the credit markets and deflation forces in the European Union and Asia threaten their financial stability.
Russia’s more than $400 billion of foreign reserves pose a challenge for President Vladimir Putin as he seeks to diversify holdings away from U.S. and European bonds and buy more debt of the largest emerging nations.
The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
A U.S. budget accord on track to win passage in Congress doesn’t change the view of Moody’s Investors Service on America’s top Aaa rating because it leaves medium-term deficits largely unaltered, according to Senior Vice President Steven Hess.
In a year of record withdrawals from taxable bond funds, no category has been harder hit than the biggest broad market strategies managed by firms from Pacific Investment Management Co. to JPMorgan Chase & Co.