Beaten at Their Own Game - Central Bank Investments Hurt by Inflation and Rising Rates.

5 major trends to remember from the beginning of 2022.

Image: Lazaro Gamio

Central banks do not just decide on the direction of monetary policy. They also have to manage reserves, mainly in the form of bond and money market assets. These two activities are independent so managers do not know the decisions on rates before they are made public.

It is therefore inevitable that central banks, such as the Fed or t…