Five key questions to ask following the US Fed rate hike
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.
The consensus view, Mould said, is that the dollar will rise, particularly if the Bank of Japan, Bank of England, European Central Bank and Swiss National Bank keep the QE taps running and leave their own rates untouched.
Mould said: “None of the quartet seems to be dashing to tighten policy.
“Although any move to do so could be the potential surprise that might stop the dollar in its tracks their current reticence does in theory point to dollar gains.
“Although the greenback did a very good job of ignoring the 2004 to 2007 rate tightening cycle.”
Tags: Federal Reserve | US
