'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

The Year of the Fire Horse – will China gallop ahead?

The Year of the Fire Horse – will China gallop ahead?

'Beneath the volatility, structural trends emerge'

Janet Mui
clock 26 February 2026 • 3 min read
Watch Professional Adviser's Working Lunch with Baillie Gifford - Simply balanced: supporting client goals through growth and diversification

Watch Professional Adviser's Working Lunch with Baillie Gifford - Simply balanced: supporting client goals through growth and diversification

Catch up on the discussion

Professional Adviser
clock 26 February 2026 • 1 min read
Should advisers now be actively considering private markets?

Should advisers now be actively considering private markets?

Rethinking accessibility and diversification

Grant Callaghan
clock 26 February 2026 • 4 min read