Columbia Threadneedle Investments

As we move through 2022 we can expect an interesting year for China’s equity market given the pledge by the People’s Bank of China (PBoC) to use monetary tools to spur the economy and boost growth. The US and China are set to spend the year diverging on monetary policy...

2022 will be a new year in more ways than one. After more than a decade of monetary stimulus, the US Federal Reserve has signaled that it will raise interest rates and reduce support for the economy and asset prices.

Edward Al-Hussainy, Senior Interest Rate and Currency Analyst at Columbia Threadneedle Investments on monetary policy in 2022 and its implications for rates and the yield curve.

2021 was a year of booming markets which were in danger of overheating before the Omicron Covid-19 variant came along. A profit boom on both sides of the Atlantic has supported equity markets, with the US looking exceptionally strong in the fourth quarter.

As one of the world’s largest economies the US is a key focus for investors. With every country attempting to return to normality following the coronavirus pandemic, we are monitoring when US economic activity might get back on track, as well as other measures of “normality” such as entertainment and leisure, high street shopping, and schools reopening.