The Federal Reserve raised interest rates by 25 bps on Wednesday. It also expects to implement balance sheet normalisation this year.
Janet Yellen in her speech yesterday said that she expects the economy to expand at a moderate pace and Fed's balance sheet to begin shrinking this year. Balance sheet shrinking will end a few years down the line according to her.
Yellen also believes that job market will strengthen somewhat further.
In an interview to CNBC-TV18, Richard Harris, Chief Executive at Port Shelter Investment Management shared his readings and views of Fed’s action yesterday.
“Fed is slowly increasing interest rates,” he said.
Speaking about global markets, he said that fundamentally he is still bullish on equity markets.
“Escalators of Europe and emerging markets will probably move a bit faster now, subject to what happens in Europe with Brexit but I suspect that is not going to have that much impact. What really does have an impact is better growth and more earnings made by companies,” he further added.For full interview, watch video...