Federal Reserve minutes hints towards a quicker pace of rate hikes


Federal Reserve minutes hints towards a quicker pace of rate hikes

This week the paranoia over interest rates that has haunted the markets throughout October looks a little more justified, following the release of the minutes from the September meeting of the US Federal Reserve’s rate setting body, the Open Market Committee. The latest sell was off sparked by fears that the bank might hike rates faster than expected, and it appears those fears were well founded with several members of the committee pushing for rates to move into restrictive territory.
 
Elsewhere another market fear was stoked, this time of Britain facing a chaotic exit from the European Union. Theresa May is desperately trying to negotiate the final withdrawal agreement but getting a settlement that resolves the Irish backstop requirements, market access for businesses, minimises barriers to trade and satisfies the Tory backbenches is looking increasingly unlikely. This will probably be one of the last acts of the May premiership, what she does next will likely set the course of the British economy for a generation. 

Read what the team at FE consider to be significant over the current week.