“In two consecutive meetings, the Fed hiked rates by 75 basis points and it has struck a consistently hawkish tone since Jackson Hole at the end of August. The central bank appears fully committed to getting inflation under control, even at the cost of significant demand destruction,” he adds.
Against the backdrop of the energy crisis in Europe, rising interest rates in developed markets, strengthening US dollar and the UK nose diving into a gilt market, Fidelity International has outlined three key themes to watch for the remainder of the year.
The first is whether there would be a soft, hard or crash landing. This is as hopes that the US Federal Reserve (Fed) would soon pivot away from its tightening path have been squashed, says Fidelity International head of macro and strategic asset allocation Salman Ahmed
