What Powell’s Hawkish Transition Could Mean for Asian Markets

  • Strategists mixed on implications for Asia equities and FX
  • Higher U.S. rates often trigger capital flows out of region
Photographer: Toru Hanai/Bloomberg
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Jerome Powell sent a stir through global markets Tuesday, paving the way for quicker-than-expected U.S. hikes, which would ripple through rate-sensitive Asian assets.

The Federal Reserve Chair told Congress that policymakers will discuss whether to wrap up bond purchases a few months earlier and retired the word “transitory” from his commentary on inflation.