Funds rely on Fed to start relaxing

By Pascal Dowling Fund managers in the North America sector are expecting the Federal Reserve to relax its stance towards maintaining current levels of interest rates. The Federal Reserve is meeting with chairman of the Reserve Board Alan Greenspan on 19 December, when fund managers expect a more neutral attitude to inflation control to develop. Mick Brewis, head of the American desk at Baillie Gifford, said: "The Federal Reserve started raising interest rates last year, essentially because the economy was growing too fast at a rate of 6%. "Inflation poses very little threat now and if ...