BlackRock sees Omicron ‘silver lining’ and says Fed rate-hike fears are overblown

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The world’s biggest money manager says the Fed will remain ‘tolerant’ of price pressures 🔒

BlackRock, the world’s biggest money manager, says investors may be too pessimistic about the effects of expected monetary tightening by the US Federal Reserve, and that the Omicron Covid-19 variant will only delay rather than derail a “powerful” restart in global economic activity.​

Global markets were spooked after minutes of the US Federal Reserve’s December meeting were released last week, signalling that the world’s most influential central bank was intent on raising interest rates and winding back monetary support to the financial system as the US economy recovers.

 

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