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By Christophe Donay, Head of Asset Allocation Macro Research Pictet Wealth Management
The Fed has finally moved interest rates up from their historic lows. Market reaction has been muted, since the much-trailed hike was fully priced in across asset classes. But, as we have long stressed, attention will now shift to the pace and timing of further tightening, which will create further market instability in 2016.
As expected, but what next?
As we had expected, the Fed raised short-term interest rates yesterday for the first time in almost a decade, increasing the target range for the federal funds rate by 25 basis points to 0.25-0.50%. The focus will now move to what comes next. We expect the pace of...
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