The Fed’s Monetary Policy Is About to Run Into a BRIC Wall

Interest-Rates / US Interest Rates
Dec 30, 2010 - 11:54 AM

By: Graham_Summers

Over the last few months I’ve noted repeatedly that THE key issue for the financial markets is the ongoing tension building between the Fed’s pro-inflation policy and China’s anti-inflation policy.

That tension just kicked it up a notch.

Over the weekend China hiked interest rates 0.25%. This was the second interest rate hike in three months (the first was on October 19, 2010). And it sends a clear message that China is taking action to cool its monetary system after consumer prices rose 5.1% in November.

China’s not the only one. Both Russia and Brazil have recently entered into the “anti-inflation frayâ€