DJ Fed Tapering May Prompt Investors to Anticipate Rate Rises -- Market Talk
0933 GMT - Friday's speech by U.S. Federal Reserve Chair Jerome Powell suggests the central bank is comfortable with scaling back asset purchases later this year, a move which could result in the market starting to anticipate interest-rate rises, says Oliver Blackbourn, multi-asset portfolio manager at Janus Henderson Investors. A rapid paring back of asset purchases would cause investors to assume earlier interest rate rises are possible, he says. "Powell was keen to push back against this link [between tapering and rate rises] but it is likely to remain in the market's collective psyche," Blackbourn says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
August 30, 2021 05:33 ET (09:33 GMT)
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