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Date published:
6 May 2022
< 1 min
Last night, Chairman Powell lifted US interest rates by 0.5%, the first rate rise of this magnitude since 2000. Markets broadly welcome the decision, however, this is aggressive.
In addition, the Fed will start to reduce its vast holdings of US treasury bonds from 30 June at a rate that's almost double what we saw in the previous cycle.
Join Guy Monson as he explores why this aggressive twin track policy is needed, what policy error led to these huge inflation overshoots, and the implications for your portfolio and asset allocation in the months ahead.