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

'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read
Advisers urged not to let clients 'act too soon' ahead of Budget

Advisers urged not to let clients 'act too soon' ahead of Budget

Communication is about ‘staying calm and keeping clients focused’

Isabel Baxter
clock 22 October 2024 • 5 min read
Why the Bank of England needs to stop over-sharing

Why the Bank of England needs to stop over-sharing

'We are used to the comments of central bankers moving markets'

Laith Khalaf
clock 17 October 2024 • 4 min read