Federal Reserve chairman Jerome Powell speaks at a news conference in March this year. The Fed is sure to tread carefully: if it were to suddenly call an end to its rate-hiking cycle, it would send a worrying signal about the health of America’s economy. Photo: AP
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Investors may expect the Fed to blink as the economic outlook darkens. It won’t

  • Nicholas Spiro says recent falls in the US dollar and bond yield reveal markets are – again – reading too much into statements by central bankers
  • Despite the stock stumbles and signs of a slowing economy, there are more reasons for the Fed to keep up its interest rate hikes than reverse course

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Federal Reserve chairman Jerome Powell speaks at a news conference in March this year. The Fed is sure to tread carefully: if it were to suddenly call an end to its rate-hiking cycle, it would send a worrying signal about the health of America’s economy. Photo: AP
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