Markets may be under-estimating impact of Fed tightening

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.