La US Federal Reserve confirmed its reputation as the most innovative and flexible central bank in the world. Armed with its explicit mandate, which couples price stability with the promotion of maximum possible employment, the Fed added another chapter to the 'good central banker' manual, and guaranteed rates close to zero until the end of 2014. A move which automatically extends the control of the cost of money to maturities longer than those that the central bank can control in normal times.
The markets have responded positively. Stock markets in China, India, Taiwan and Australia are closed for various holidays, but in Hong Kong, the market rallied more than 1% on the first day of trading after the Lunar New Year holiday – MSCI Asia regional index Pacific grew 0.7%, reaching its highest level since last October. The euro continues its recovery, to 1.31, and raw materials, from oil to copper, 'hear' the good news with another increase.
http://www.bloomberg.com/news/2012-01-26/asia-stocks-oil-rise-as-fed-signals-low-rates-new-zealand-dollar-gains.html
