Tightening monetary policy by Fed a test for Singapore’s Reits, market revitalisation project
Coherent corporate strategies, disciplined execution and proactive investor engagement will become increasingly important
[SINGAPORE] When the US Federal Reserve was hiking rates at a frenetic pace in 2022 in response to the post-pandemic surge in inflation, this column warned that investors should brace themselves for a broad market sell-off.
The impact of that round of global monetary policy tightening was much more shallow and short-lived than I had expected, though. Much of the upward pressure on prices at the time had been caused by supply chain bottlenecks in the wake of the pandemic, which soon eased.
As a result, inflation quickly abated while economic activity stayed resilient. By 2023, many investors were anticipating that the Fed would pause its rate hikes and eventually begin cutting – which it did in late 2024.
