Commenting on yesterday’s news of a rate rise from the US’s FOMC, David Absolon, (pictured) Investment Director at Heartwood Investment Management says: ‘‘As expect
Commenting on yesterday’s news of a rate rise from the US’s FOMC, David Absolon, (pictured) Investment Director at Heartwood Investment Management says: ‘‘As expected the Fed went slightly more hawkish in projecting the future interest rate path, but it is no game changer.
“The difference to last December is that this time inflation has a positive impulse. The market reaction in the next few days is not irrelevant, but it will be in January to see whether the market has over-tightened financial conditions.’’
The Fed raised rates by 25 basis points in a widely predicted move that had already been factored in by the markets and is seen as a sign of the beginnings of reflation in the US.
