GPF meets Fed in mid-December to raise interest rates
Date 12 Dec 2021 time 10:30
GPF will keep an eye on the Fed meeting in mid-December, expecting to raise interest rates faster hopes to reduce inflation at a high level
Dr. Srikanya Yathip, secretary-general of the Government Pension Fund (GPF) said that inflation in many countries remained high and above estimates, especially due to excess demand in the United States. and pressure the US Federal Reserve (Fed) to reduce monetary policy easing (tapering) and turn to tightening (tightening) faster. In mid-December (14-15) there will be a meeting of the Bank’s Monetary Policy Committee. The Federal Reserve (FOMC) has closely monitored the meeting and viewed the Fed’s stance as more hawkish, in line with Fed Chairman Jerome Powell’s statement on economic conditions to the Banking Commission. of the Senate on December 1 The Fed is expected to speed up the taper to more than $15 billion a month, ending QE during the second quarter of 2022, followed by roughly two rate hikes in the second half of the year. Central banks of other major countries such as the United Kingdom, Canada and Australia. They also showed signs of halting easing or tightening because of high inflation.
By the past October US headline CPI hit 6.2%, above the Bloomberg Consensus forecast of 5.9%, up sequentially and above the general estimate since the second quarter of this year. early December The US Treasury Futures Market estimates the Fed will raise its policy rate nearly three times over the next year.
How long does the GPF expect the high inflation rate to be protracted? We should be able to see a clearer picture in the future. 1) Considerations include balancing excess demand and short supply in various sectors of the economy. Furthermore, excess demand that has accelerated the Fed more than shortfall continues to signal in the coming years. Many economic figures, such as retail sales, orders for non-durable goods, etc., and 2) the uncertainty from the Covid mutation, especially the Omicron strain, that could lead to longer supply disruptions.
In terms of investment, GPF views that it needs to pay more attention to asset holdings and adjusting portfolio allocations that can help prevent inflation risks, such as commodities such as copper, which are appropriate for inflation. Chinese manufacturers are high. Stocks that benefit from commodity prices Debt instruments Emphasize strategies that support short- and medium-term interest rate hikes.
<!–
–>
.
