FXStreet (Mumbai) – The Federal Reserve (Fed) will have to push back its strong desire to move rates from zero as policymakers are worried about potential turmoil in the global bond markets and its spill over effect into equities, Citigroup’s head of North America Economics William Lee noted on Monday.
“The Fed’s trying to reassure everybody that they’re going to do things nice and slow, nice and gradual…but one of the things that I’m worried about is what’s happened to the bond market since the crisis,”
“People want to get it ahead of any rate increase. So the Fed can reassure everybody that things are going to be very very slow,”
“I think the equity market is a place that people have gone to for liquidity.”