Allianz Group Communications
Receive the latest Allianz news.
The recent global financial market turmoil complicates and adds risk to the potential interest rate decision to be announced by the Federal Reserve on Wednesday. Having said that, it is unlikely to deter what would constitute the first Fed rate hike in almost ten years. In potentially making this decision, the Fed would need to adopt – and is likely to implement -- a clear communication approach that emphasizes three key elements:
Such communication is vital, especially as financial market sentiment is challenged to adapt to the "great divergence" between the Fed's monetary policies and those of central banks elsewhere, which are likely to opt for more stimulus using unconventional measures.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer: