Neil Williams, Chief Economist for Hermes’ Global Government & Inflation Bonds team believes that, as the economy expands against such an accommodative policy backdrop, speculation will build that the Fed is letting rip on inflation. This would rekindle memories of 1994, when the Fed’s sudden raising of interest rates, from 3 to 6% over 18 months, triggered a bear leg in bonds and sell off in equity markets. However, a recurrence does not look imminent.
Download to PDF
Neil Williams, Chief Economist for Hermes’ Global Government & Inflation Bonds team believes that, while helpful in providing liquidity and settling financial markets, the European Central Bank’s operations are doing little to raise solvency or growth, nor address an underlying competitiveness problem that may take a decade to solve. DOWNLOAD PDF
Asmita Kapadia Tel: +44 (0) 20 7680 2120 Mobile: +44 (0) 7738 916 122 Email: a.kapadia@hermes.co.uk
Jean Dumas Tel: +44 (0) 20 7680 2152 Mobile: +44 (0) 7841 324061 Email: j.dumas@hermes.co.uk Visit Media Centre