In the coming months, the market may confuse the Federal Reserve’s increasing bullishness on the US economic outlook with hawkishness on rate expectations

  • We expect volatility in financial markets as investors overestimate how soon monetary stimulus will be withdrawn.
  • In our view, this would be premature, as it will take time to develop persistent inflationary pressures and return to full employment.

  • We have strong conviction that the Fed will successfully push back against any sharp increases in rates and tightening of financial conditions by reaffirming its commitment to providing support until the recovery is complete.

  • To continue reading,

    Sign in to access this Premium article.

    Subscription entitlements:

    Less than $9 per month
    3 Simultaneous logins across all devices
    Unlimited access to latest and premium articles
    Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

    Stay updated with Singapore corporate news stories for FREE

    Follow our Telegram | Facebook