, Columnists
For the Descent, Follow the Dots
While the Fed still plots its course down from high rates, other central banks are starting off on their own.
See you later this year?
Photographer: Matthew Williams-Ellis/Universal Images Group/Getty Images
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Slowly, steadily and reluctantly, impatient central bankers in some developed markets are jumping ahead of the US to cut high interest rates that are weighing on their economies. Easing monetary policy before the Federal Reserve is far from ideal. Lower rates elsewhere lead to capital flow to the US. That puts pressure on local currencies — and increases the cost of servicing dollar-denominated debts for these countries.