Fed will need to tread carefully to avoid market crises: Mobius

Tokyo

NOW that US Federal Reserve chair Janet Yellen has said that the case for a rise in US short-term interest rates has "strengthened", stock and bond investors in advanced and emerging markets should look out for possible trouble, says veteran emerging-market investor Mark Mobius.

One of the reasons why the Fed is moving so slowly and cautiously towards tightening monetary policy is that "they are probably afraid of the impact that a sudden rise in interest rates would have", the executive chairman of Templeton Emerging Markets Group told The Business Times.