Fed losing market power, taking not making prices

Pro-hike view: Dudley, who usually has quite a good touch with markets, illustrated the issue well when he said that if the economy keeps to its current trajectory there is a strong case for hiking before the end of 2015. – Reuters

THE Federal Reserve appears to be reacting to events outside its control rather than setting the agenda in financial markets.

The Fed’s decision to delay raising interest rates at its September meeting, tied in part to concerns over China, unsettled investors, leading some to conclude that not only was the world’s most powerful rate setter hard to predict but that it was far less able to counter changes in market sentiment.