Economic Affairs

Watch out for the Fed in 2022

As the era of easy money passes, new uncertainties emerge

The US Federal Reserve has had the luxury of not having to worry about inflation and could focus exclusively on supporting the economy and the markets. PHOTO: REUTERS
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As we enter 2022, a 12-year-long monetary policy experiment is coming to an end.

Since 2009, the benchmark Fed funds rate - which influences interest rates around the world - has lingered at close to zero, with only brief and temporary deviations along the way. The United States Federal Reserve has had the luxury of not having to worry about inflation and could focus exclusively on supporting the economy and the markets.

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