Expectations that the Federal Reserve (Fed) will raise interest rates have increased markedly following the October Federal Open Market Committee (FOMC) meeting, but what does this mean for bond investors?
Despite Friday's strong jobs data, we see little need for the Federal Reserve to aggressively tighten monetary policy.
A moderately more hawkish Federal Reserve—which on Wednesday opened the door wider for a December rate hike—will perhaps stall a recovery in emerging market currencies, but the global search for yield will likely keep dollar denominated emerging market debt from retreating in price substantially.
Marcus Brookes discusses why he believes the US economy is in good health and a Christmas interest rate rise could be on the cards.
Forecasts for an interest rate rise in the US drifted out further after the Federal Reserve (Fed) decided against kick-starting a cycle of rate hikes blaming global economic and inflationary pressures.
The much-anticipated US employment report depicted a healthy US labour market today. Despite events in China, we still believe the Federal Reserve (Fed) will raise interest rates on 17 September.
If there were any doubt only a few days ago, there should be none at all now - that even incrementally more restrictive monetary policy by the Federal Reserve is a danger in a very slow growth world.
Economic and Strategy Viewpoint
In this month's Viewpoint Schroders economists investigate the impact of a strong dollar and cheap oil on the global economy, the contrasting performances of the eurozone countries and the outlook for the BRIC nations.