Home Views Global Economy

Fed tightening and Asia: When will this misery end?

Manu Bhaskaran
Manu Bhaskaran9/21/2022 08:43 PM GMT+08  • 10 min read
Fed tightening and Asia: When will this misery end?
The Fed will continue tightening monetary conditions. But the turning point is approaching. / Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

As this column is being penned, the US Federal Reserve is preparing to announce its latest rate decision and financial markets are in a real tizzy about that. But to understand the full implications of all this for the Asian region, we need to go beyond the day-to-day volatility in markets and focus on the fundamental forces at work.

For the near term, we need to look at two factors. The first is what happens to US inflation and how that shapes Fed policy. The second is to look at what the outcomes for inflation and monetary policy in Asian economies will be as a result. The key issue for the longer term, however, is to appreciate how fundamentally asset pricing behaviour will adjust as growth, inflation and monetary policy settle into a new equilibrium after all the tumultuous changes of the past few years.

How far will the Fed go?

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.