Central banks are destabilising financial markets, which is a problem

The Federal Reserve and the ECB have changed the announced direction of their monetary policies in the recent period: The Federal Reserve has shifted from announcing interest rate hikes in 2019 to signalling that interest rates are more likely to be cut; The ECB had an overly optimistic view of growth and inflation in the euro zone, which led the financial markets to expect a normalisation of its monetary policy from the end of 2019, whereas it has now announced it s determination to move to a more expansionary monetary policy if necessary. These changes of opinion and communication by the central banks, which reveal their inability to predict the evolution of the economy, are destabilis ing for financial markets (interest rates, equities), which is not helpful.