Financial markets should start bracing themselves for a less dovish Fed

clock • 4 min read
Frédéric Leroux of Carmignac

Frédéric Leroux of Carmignac

There is more than just inflation behind the recent, substantial rise in US interest rates. This may well prove to be a real inflection point.

Could investors already be sensing that the Federal Reserve - the almighty US central bank - is changing its tune? Ever since the financial meltdown in 2008, the Fed has been unfailingly cutting interest rates and buying a variety of US government debt instruments in an effort to shore up the American - and global - economy. And it is done so even more markedly to deal with the fallout from the Covid-19 pandemic. Under the guidance of current Chairman Jerome Powell, the bank has unquestionably been pursuing the most dovish policy in its history. Bond yields soar as expected rate hi...

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