Asset managers for the rich and super-rich around the world were keeping an especially watchful eye on Frankfurt as the governing council of the European Central Bank held its latest monthly meeting Thursday to decide on interest rates and monetary policy.
That’s because the rich and powerful are counting on the ECB to fill their coffers with fresh money, plugging a gap in the market that has been left by the exit of the U.S. Federal Reserve.
A global shift is underway in the world of central banking. Last week, the Fed decided to stop buying treasury bonds, which means that it will no longer be pumping additional liquidity into the financial markets. The end of “quantitative easing” in the United States marked a watershed moment in the six-year-old global financial crisis, and a sign that the U.S. economy has largely returned to health.
For asset managers and their clients – attention now turns elsewhere.