The Federal Reserve will deliver a volatile summer for markets

America's central bank has hinted that it expects to raise interest rates twice in 2023, sending send markets into a spin. There's more volatility to come.

Houses with American flags on them
US house prices haven’t risen this fast since before the 2007 subprime meltdown
(Image credit: © Alamy)

Has Jerome Powell turned into a hawk? The chair of the US Federal Reserve, America’s central bank, has repeatedly insisted that surging inflation is “transitory” and that monetary policy must be kept ultra-loose for the foreseeable future. The annual rate of US inflation hit a 13-year high of 5% last month, while other data also shows that the US economy is red-hot. Hence a rethink: last week Powell finally acknowledged that “inflation could turn out to be higher and more persistent than we expect”.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.