Domino effect: The asset class risks of a US rate hike

Laura Miller
clock

Investors across the globe are holding their breath ahead of December's Federal Open Markets Committee (FOMC) meeting, to see if it raises the US interest rates. But is it that big a deal? Potentially. This is why...

US interest rates have been at near zero - 0% to 0.25% - for seven years. But, based on signals from the FOMC, that could all change between 15 and 16 December when the committee next meets. Markets have been jumping around for months at the merest hint of a hike. But with any raise likely to be modest - around 0.25% - what's all the fuss about? Maybe nothing - but maybe a lot, where, like dominoes, each impact could have a knock-on effect.   Potential domino 1: To start with, there is debate about the strength of the US economy. Enzo Puntillo, head of fixed income at GAM In...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Burnham to stick with fiscal rules as power set to flow out of Whitehall

Burnham to stick with fiscal rules as power set to flow out of Whitehall

First speech since PM bid

clock 29 June 2026 • 2 min read
BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

Geopolitics in the driving seat

Michael Nelson
clock 25 June 2026 • 2 min read
Advisers highlight uncertain political and fiscal future after Starmer resignation

Advisers highlight uncertain political and fiscal future after Starmer resignation

Prime minister’s exit places chancellor Rachel Reeves’ position ‘inevitably’ under scrutiny

Isabel Baxter
clock 22 June 2026 • 5 min read