'Significant challenges lie ahead' for the Federal Reserve

'Uncertainty' surrounding inflation

clock • 2 min read

At the latest Federal Reserve meeting yesterday, US officials moved to keep rates steady at 0.25% and to maintain the pace of its quantitative easing programme but signalled to markets that hikes to interest rates would come into effect from March onwards.

The move was broadly in line with expectations and some commentators were quick to reassure markets that the Fed's actions would spell good news for equities. "The tone has been mostly cautious as growth remains front and centre in the Fed's dual mandate with inflation running hot. Powell must walk the thin tightrope of tempering inflation whilst making sure to not spook economic growth in doing so," said Alex Livingstone, head of trading for FX & ETFs at Titan Asset Management. "The recent pivot towards pricing a progressively higher rate environment means equities can rebound from h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read
Stock pickers call for caution over rapid return to US equities

Stock pickers call for caution over rapid return to US equities

Quilter's WealthSelect boosts fixed income and reduces equity exposure

Linus Uhlig
clock 01 July 2025 • 1 min read