Rick Rieder: Fed makes case for further rate normalisation

Moderate inflation

clock • 4 min read

Rick Rieder assesses the implications of the Federal Reserve's latest quarter-point increase in interest rates and explains why he expects the US central bank to raise them again three times next near - with a chance of four

The announcement of a further quarter-point policy rate hike by the US Federal Reserve's Federal Open Market Committee was not surprising - indeed it was widely expected. That is largely because it has become increasingly clear over the past year that what is commonly thought of as the Fed's dual mandate has effectively either been achieved (in the case of labour markets) or is likely to be shortly met (price stability of near 2%). In fact, after another robust month of job growth in November, during which 228,000 jobs were gained, combined with a 4.1% unemployment rate, the US economy c...

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 Economics / Markets

More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read
Elections and advice: Planning in political and legislative uncertainty

Elections and advice: Planning in political and legislative uncertainty

‘It should not be based on speculation, always plan on current legislation’

Isabel Baxter
clock 08 May 2024 • 3 min read
'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read