published Dec 15th 2016, 2:29 am, by Jake Ulick

(Bloomberg) —
Step aside, central bankers. The prospect of more government spending has helped make the term “fiscal stimulus” more common in a Bloomberg count of news stories, helping it to overtake “monetary policy” by the biggest margin since 2008. It’s a reversal of a multi-year trend that saw the task of repairing the global economy fall on the shoulders of the world’s central bankers. They opted to use some of the most unorthodox stimulus ever tried including ultra-low (and sometimes negative) interest rates, as well as massive asset purchase programs. The tide may be turning, however, and focus shifting to politicians and their plans. President-elect Donald Trump’s proposal to increase spending in a bid to fan economic growth in the U.S. has helped boost the daily count of stories containing “fiscal stimulus” to the highest in eight years, stealing the spotlight from “monetary policy” in the process.

There are other signs that markets are shifting their attention, with the Bank for International Settlements — sometimes known as the central bank’s bank — making the case in its latest quarterly report that recovering economic growth and higher interest rates have paved the way for investors to reduce their reliance on easy monetary policy.

Meanwhile, the Federal Reserve opted to raise rates on Wednesday while forecasting a steeper path for borrowing costs next year thanks to higher inflation and a tightening labor market.

To contact the author of this story: Jake Ulick in Hong Kong at julick@bloomberg.net To contact the editor responsible for this story: Tracy Alloway at talloway@bloomberg.net Garfield Clinton Reynolds

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