The Fed, a bad parent; the market, a spoilt brat: Nanyang B-school Professor

SINGAPORE (Sept 19): Investors will be scrutinising what changes the US Fed might make following its meeting tomorrow, but from the perspective of associate professor Lee Boon Keng at Nanyang Business School, the bigger issue isn’t where the rates are going, but the US Fed’s very own credibility.

“It is more about the leadership it is on the verge of losing because it does not have the gumption to raise interest rate, yet again, this week,” says Lee.

The professor describes the financial market behaving like a “spoilt brat”, throwing up a big fuss if the Fed shows the slightest sign that it will tighten liquidity.

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