Fed rate hikes of little concern: economists

Singapore

EVEN though US Federal Reserve chair Janet Yellen said at her congressional testimony on Wednesday that US interest rates would continue their gradual ascent, it would not dampen inflation or economic growth, said economists The Business Times spoke to.

They also do not see the Fed hikes destabilising the Asian economies' strong economic performance.

CIMB Private Bank economist Song Seng Wun said that despite the hike, US interest rates are still at historic lows, and they are therefore not expected to reduce consumption and investment.

Similarly, Edmund Tie & Company head of research Lee Nai Jia said Ms Yellen's comments were dovish, and that it should consequently not affect investment sentiment in the short run. However, he conced…