Why a hawkish US Fed is reverberating around markets

Why a hawkish US Fed is reverberating around markets

Low volatility and complacent markets are often a precursor of more bumpy times ahead. While measures of financial market price moves were hitting rock bottom levels a few weeks ago, some were bemoaning how quiet markets were. Meanwhile, the best traders were scouring the calendar for risk events that could herald the end of the calm before the storm hit.

Within the past week, markets have been forced to address a much more hawkish US Federal Reserve meeting. Although their statement was little changed, optimism on President Joe Biden's spending plans and the reopening economy saw positive revisions to growth forecasts and even more