Learning how to cope with losing is an integral part of an investor’s journey

[SINGAPORE] The US Federal Reserve’s 11 rounds of interest rate hikes – a total of more than 500 basis points between March 2022 and July 2023 to tame inflation – hurt businesses. The higher rates increased borrowing costs, thereby eroding corporate profits.

However, the Fed’s monetary tightening cheered fans of Singapore dollar fixed deposits (FDs) and Treasury bills (T-bills) as returns from these safe instruments rose.

Between September 2024 and December 2024, the Fed changed tack to address labour market weakening, with three rounds of interest rate cuts totalling 100 basis points.