HONG KONG – Asian markets tumbled Monday on growing expectations the Federal Reserve will begin lifting interest rates as early as next year as it looks to prevent the economic recovery from overheating.
In a bid to soothe traders fretting over surging inflation, central bank officials have for months pledged to maintain their ultra-loose monetary policy until the rebound was well on track. But last week it brought forward its forecasts for tightening.
The news was initially broadly taken in stride by investors as the Fed’s so-called “dot plot” outlook for rates suggested it would not begin hiking until 2023, and would discuss winding down its bond-buying programme la…
Keep on reading: Asian markets sink as traders contemplate Fed tightening