Federal Reserve

If the vaccines are successful in putting the pandemic behind us, capital markets could truly start to rumble

CGS-CIMB has advised investors in the Asia Pacific region to “overweight” equities and “underweight” bonds in their portfolio.

Markets have remained calm following the debates in the absence of any policy surprises.

The US Federal Reserve’s latest policy shift will not have any significant impact on the economy: Reuters poll

“We expect the new dovish strategy may lead to the Fed keeping its fed funds interest rate at 0.00-0.25% for up to the next five years now.” - BOS Chief Economist Mansoor Mohi-uddin.

Political risks and inflation could disrupt this prevailing rate stability going forward.

Of late, however, there appears to be a reversal in growth expectations, driven by the country’s worsening outbreak, the likelihood of more fiscal spending and rising deficit as well as extremely dovish comments from the Fed.

Discussions are already underway in Washington about the prospect of a digital dollar to maintain the greenback's hegemonic position.

BANGKOK (June 18): A falling tide lowers all boats, it seems. Amid an exodus from emerging markets, investors are pulling out of even Asian economies with solid prospects for growth and debt financing.

(Feb 22): U.S. central bankers sent a strong message Wednesday that an expansion with “substantial underlying economic momentum” could sustain additional increases in interest rates this year.