Hawkish Fed to taper from next month
The US Federal Reserve announced it will begin to unwind its quantitative easing programme in October, and said another rate hike this year is likely despite persistently low inflation.
Federal Reserve
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“Harvey damage will force Fed to hold rates”
The damage caused by hurricane Harvey will dampen GDP growth to an extent that will force the Fed to forget about hiking rates further this year, it was claimed.
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Soft inflation data throw Fed tightening into doubt
Friday’s US inflation report suggests the recent streak of soft CPI inflation may be more persistent than the Fed initially believed, decreasing the likelihood of further rate rises.
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Brace for more volatility in US Treasuries
The bulk of US Treasuries are owned by the Fed and foreign investors. But this is set to change, and it could have serious consequences.
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Recession risk is on the rise – the key factors to watch
While markets could remain complacent and expensive for some time to come, recession risk is rising, says asset manager Robeco. Fidelity is also increasingly cautious, expecting “the longest equity bull market since World War II” to end within 18 months.
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The five questions to ask following the US Fed rate hike
The third 0.25% interest rate hike of this upcycle from the US Federal Reserve begs five questions, all of which have implications for the US, the globe and portfolios.
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Fed signals new policy phase, and six further rate hikes?
The Federal Reserve’s decision to raise its benchmark rate for the second time in three months, has led to speculation of further rises this year, with another four to come in 2018.
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ANALYSIS: Hawkish Yellen should continue on hiking path
Federal Reserve chair Janet Yellen offered the market a hawkish message on Tuesday as she indicated the US economy might be poised for a series of gradual interest rate increases, starting as early as next month.
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Dollar rallies/gold falls on back of Fed’s ‘happy’ hike
The dollar surged this morning on the back of only the second Fed rate rise since the 2008 financial crisis.
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Trump Tantrum hits emerging markets
Foreign investors took their money out of EM assets at the fastest pace since the 2013 Taper Tantrum in November, according to the Institute of International Finance (IIF).
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Trump’s anti-immigrant, isolationist stance pumps up inflation expectations
President-elect Donald J Trump’s aggressive positions on immigration, infrastructure spending and isolationism could push up wage and core inflation, commentators fear.
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High-yield bonds and emerging market debt – Divergent fates
While emerging market debt saw record quarterly inflows globally during the third quarter of 2016, the global hunt for yield does not benefit developed market junk bonds. But this could soon change.