Investment Conundrums: Close Brothers AM's Nancy Curtin on the power of forward guidance

Helped by the Federal Reserve

Nancy Curtin, chief investment officer at Close Brothers Asset Management, has praised US central bankers on their policy of forward guidance and improvements made since the 2013 'taper tantrum'.

The Federal Reserve has increased its forward guidance in an attempt to prevent events such as the taper tantrum, where the Fed turned off one of its quantitative easing programmes causing investors to panic and sell US Treasury bonds, leading to a dramatic surge in yields. Curtin, who has been CIO since 2010, said, as a result, previous Fed chair Janet Yellen and her successor Jerome Powell have been "more pragmatic" in monitoring data and, in turn, offered markets guidance on their next move. 'The US economy is firing on all cylinders': The Fed hikes rates, indicates two more this y...