Editor's letter: All you have to fear is fear itself

Markets worried by possible rate hikes

Last week, the topic du jour was whether the US Federal Reserve would be forced into aggressive tightening as inflation continues to rear its head.

Following the Fed's meeting on Thursday (27 January), interest rates were kept at 0.25%, but not without a stark warning that hikes will be on the cards soon. This may not come as a surprise to many, given the only way to have avoided the recent inflationary red flags would have been to live under a rock for the last year; inflation is already well above the US's target, unemployment rates are below estimates for the long-term maximum level and soaring energy prices have dominated every newspaper's front page over the last quarter. US inflation reaches highest peak in 40 years But ...