Updated: Dec 20, 2021
Now that's a rate hike! Yikes!
Russia raised its overnight lending rate by 1.0% to 8.5%. Russian inflation running at 8.1%.
Ok, I'll be the first to admit: Russia is an emerging market, inflation has been a long-term problem there, and the Russian economy is does not have easy access to global cash flows like we do.
Yet, it is an example of a central bank CHASING the inflation problem and the bond market higher. This is the unspoken fear here in the US: what will the Fed do if interest rates begin marching higher. Inquiring minds want to know...
This is a low probability event for the US, but we have game plan in place for this possibility. Call us if you'd like to discuss.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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