Stubborn US inflation, delayed Fed rate cuts could mark a painful adjustment for investors
A slower pace of rate cuts could be very bad news for Reits, all of which carry debt that needs to be refinanced from time to time
THIS column last broached the topic of inflation and interest rates in December, right after the US Federal Open Market Committee (FOMC) indicated no further rate hikes were likely.
It was a watershed moment for markets: the era of rate cuts had officially begun.
Since then – even before the Federal Reserve has delivered a single rate cut – expectations about the pace and magnitude of US monetary policy loosening have been dialled back in the face of stronger-than-expected economic data.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Relative measures can be absolutely wrong
Without a game changer, Sentosa Cove condos will continue underperforming
Iran-Israel strife throws out a lifeline to shippers
How to handle populists: a CEO’s survival guide
Expanding a portfolio’s efficient frontier with natural capital investments
SGX RegCo should push companies to help minorities requisition resolutions at AGMs