Disclaimer: Views in this blog do not promote, and are not directly connected to any Legal & General Investment Management (LGIM) product or service. Views are from a range of LGIM investment professionals and do not necessarily reflect the views of LGIM. For investment professionals only.

The Fed’s pivot

I discuss the implications of the Federal Reserve’s stance on interest rates with CNBC.


Back in 2013, Richard Fischer of the Dallas Federal Reserve warned of “feral hogs” in the bond market. The implication was that the Federal Reserve (Fed) shouldn’t worry about the squeals and protestations of investors and should just get on with the job of delivering against its inflation and unemployment mandates.

I would never dream of talking about my fixed-income colleagues in those terms – certainly not when any of them are in earshot! But there’s definitely been a change of tone at the Fed under Jerome Powell. US central bankers now see delivering ultra-loose financial conditions as key to underpinning confidence in the post-COVID economy.

Despite the rebound in the equity market and feral hogs driving credit spreads tighter, there’s about as much chance of seeing some flying pigs over Washington as the Fed raising rates in the next two or three years.

In the video below, I discuss the implications of that pivot with CNBC.

Sign up for email alerts

Latest articles in a weekly digest

Please select your location


North America


Please select your investor type

Please select your investor type