Insight - Challenges from aggressive Fed rate hikes

Fortress Capital Asset Management Sdn Bhd CEO Thomas Yong questioned if monetary policy could be effective when inflationary pressures are largely stemmed from supply disruptions rather than unexpected demand growth.

THE US Federal Reserve’s (Fed) aggressive interest rate hike may have brought some certainty regarding its inflation control, but has also thrown up challenges to strike a fine balance and avoid a hard landing.

As the Fed may have been too late to raise rates, the challenge now is also to grapple with the possible onset of recession and the lack of room for rate cuts.