Not all doom and gloom

Fed tightening no longer spells misery in today’s EM

WASHINGTON: Inflation hawks are about to get what they want from the Federal Reserve (Fed) – which means emerging markets are about to get what they’ve traditionally feared.

The prospect of higher United States interest rates, which the Fed is promising to deliver this year and next, has typically been a recipe for trouble in developing economies, especially when it results in a stronger dollar. The so-called taper tantrum of 2013 and Mexico’s 1990s crash stand out in the history books.