B · Normal
[Economist: The market has exaggerated the risk of the Federal Reserve raising interest rates by 50 basis points in December] On November 11, stronger-than-expected U.S. inflation data triggered speculation that the Federal Reserve would raise interest rates by 50 basis points in December. But Daiichi Life Research Institute economist Seiji Katsurahata said such expectations were overdone. U.S. bond yields are facing upward pressure in the short term, pushing the dollar stronger and limiting gains in U.S. stocks. However, as the market's expectations eventually stabilize to a 25 basis point interest rate hike, short-term U.S. bond yields should return to normal, and the dollar's upside may be limited.
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