Markets may be under-estimating impact of Fed tightening
Finance veteran says US is likely to raise short-term rates several times in coming year
Tokyo
THE US Federal Reserve is likely to raise short-term interest rates several times over the coming year and markets may not have priced this fully into their calculations, says Charles Dallara, a leading financial industry figure, who warns that events could trigger market turbulence.
Another prospective threat that markets may be under-estimating is the possibility of inflation being reignited, especially in the US and Britain, the former US Treasury and IMF official-turned-financial sector practitioner and leader, told The Business Times in an interview.
Meanwhile, distortions that unconventional monetary policy has created in global financial markets - plus the sheer volume of deb…
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