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Below is view on Fed hikes rate by 75bps - Impact on Global Markets By Mr. Ramkumar Venkatramani, Lead – Investment Advisory, Kristal.AI

“The current spike in inflation, though initially driven by supply crunches, has become stickier and is sustained by a strong job market and further exacerbated by the war in Europe. This spike in inflation in the US and in Europe is forcing the central banks including the US Fed to eye a sharp increase in interest. The anticipation of aggressive Fed action has spooked markets across the world including Asia. Increase in US rates would make it more attractive for yield seeking investors at the expense of emerging markets. More importantly, if the Fed’s aggressive action led to a recession in the US, it can quickly spread to other parts of the world, slowing down the global growth rates.”

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