While the Federal Reserve (Fed) is publicly committed to keeping interest rates near zero – and no hikes are priced in until late next year at the earliest – official comments about inflationary pressures could become a chorus in months ahead, making tapering a more concrete prospect and likely heightening volatility in global financial markets.
HAUNTED by memories of past United States interest rate hikes, the world’s central banks are laying the groundwork for a transition to life with less global stimulus, with many countries already signalling moves to the exit.
While the Federal Reserve (Fed) is publicly committed to keeping interest rates near zero – and no hikes are priced in until late next year at the earliest – official comments about inflationary pressures could become a chorus in months ahead, making tapering a more concrete prospect and likely heightening volatility in global financial markets.
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