Global Investors Contemplate Fallout From US Rates Reaching 6%

‘Reasonable chance’ Fed Funds rate may reach 6%: BlackRock
Repricing of rates bets drove up the dollar, weakened equities

WATCH: “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said.Source: Bloomberg

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By Richard Henderson

March 8, 2023 at 1:39 AM UTC

Updated on

March 8, 2023 at 8:12 AM UTC

This article is for subscribers only.

All of a sudden, the prospect of US rates hitting 6% is becoming real enough for investors to rethink their strategies.

BlackRock Inc. and Schroders Plc are among those who are weighing in on the debate of what will happen if US rates peak at 6%. As late as end-February, investors across bonds, stocks and currency markets were still calling for an end to higher rates with bets for a broad rally in the second half.