There is less than a week to go before the Federal Reserve is expected to raise interest rates. Capital Economics says there are five reasons why investors should not fret that lift-off will badly hurt the global economy.
The first point, argues Andrew Kenningham, CapEco’s senior global economist, is that, assuming inflation remains low, any tightening by the Fed would occur only if the US economy continues to do well.
“A steady US recovery should, in turn, help many other economies by sustaining demand for their exports and supporting confidence.”
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