Central bankers around the world are bracing themselves for more financial turbulence as the Federal Reserve prepares to wind down its easy-money policies, the Wall Street Journal reported today. Global markets have reeled since May, when the Fed began signaling it could soon start scaling back its $85 billion-per-month bond-buying program. U.S. mortgage rates have been rising, and currencies and stocks in many developing economies have been falling. This volatility is "a salient reminder" that the effects of the Fed's pullback "may not be smooth," said Charles Bean, deputy governor for monetary policy at the U.K. central bank.
