Pre-pandemic ultra-low rates may not return; how to invest in an elevated rate regime? Here’s what experts say
Live MintUS Fed Chair Jerome Powell reiterated on Wednesday, June 12, that the central bank would need more confidence that inflation has come down sustainably. Consequently, it is reasonable to expect that monetary policy and overall interest rates will stay higher for an extended period," Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers, pointed out. Factors such as slower economic growth, rising unemployment, positive supply-side shocks, and technological progress could reduce inflation and interest rates faster than currently expected, he said. Once strategic allocations are set, investors should not be swayed by prevailing perceptions or short-term news, including near-term inflation and interest rate trends," said Hajra. Aamar Deo Singh, Sr. Vice President, Research, Angel One The US Fed's decision to keep interest rates unchanged and signal that there might only be one rate decrease this year seems to be driven more by worries about inflation and the strength of the US economy.
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How to invest in a period of rising interest rates
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