Why the Fed credibility crisis will hit emerging markets harder

As political pressure on the US Federal Reserve intensifies in Washington, the reverberations are rippling across the globe. Gregory Peters, co-chief investment officer of fixed income at PGIM, has noted that bringing political pressure to bear on the Fed is an “own goal” – a self-inflicted shock that erodes confidence and is unlikely to deliver lower borrowing costs for the US. This reassessment – marked by quiet “sell America” trades – is beginning to surface. The damage extends far beyond...

By Shanshan Li