One thing which every equity or a debt investor, every money manager and every advisor has followed throughout year 2022 is Fed’s stance, and its consistent rate hikes. For those who have witnessed this in the past remember how Fed brought rates down to 0% from as high as 4.75% after GFC. The same is reversing now, so remembering history is important to understand the present and projecting the future.
Fed Stance takes time, and it depends upon the focus. We believe that till end of this FY23, Fed’s focus is going to be inflation and it will take time for inflation data to show the effect of rate hikes. What is evident today is that containing inflation is key, and we’ll have to deal with the results.
But how does it impact India? And how is Fed expected to react, given its history of rate cuts & hikes?
Read our take on this and also check out the Monthly CAT-III AIF Newsletter with performance data as of 31.10.2022.
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