Five key questions to ask following the US Fed rate hike
By , 17 Mar 17
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.
Emerging markets may struggle against the dollar if the Fed continues rate rises throughout 2017 and beyond, Mould said.
“The trade-weighted dollar index from the Bank of England still only stands at around 106 compared to the mid-1980s peak above 160 and the early 2000s one north of 120, so if it really starts to motor the buck could go further yet,” he added.
“This explains why emerging markets are doing so well, given the dollar weakness which has resulted from the Fed’s continued preference for careful baby steps rather than a sudden gallop higher in rates.”
Tags: Federal Reserve | US
