FT News Briefing The Fed expects three interest rate rises for next year
Dec 16, 2021
The Federal Reserve is set to raise interest rates three times next year to tackle inflation. Investors are flocking to inflation-linked assets like treasury bonds and REITs, anticipating continued price rises. Meanwhile, a shocking money laundering case involving garbage bags full of cash unfolds, revealing serious banking negligence. Also, a brewing legal battle sees a British retailer suing a German competitor over alleged copycat Christmas gin products. It's a mix of finance, legal drama, and retail rivalry!
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Fed's Hawkish Pivot
- The Federal Reserve plans to raise interest rates three times in 2022 and five more times in the following two years.
- This aggressive approach aims to control inflation, accompanied by a faster tapering of the bond-buying program.
Inflation Hedge
- Investors are betting on persistent inflation by investing in inflation-linked assets.
- These include inflation-indexed treasury bonds and investments in energy and real estate.
NatWest Money Laundering
- A gold dealer regularly deposited bags of cash into NatWest branches, raising red flags among staff.
- Despite internal alerts, no action was taken, leading to NatWest's conviction for money laundering failures.