2 . Interest rate hikes are coming
According to the survey results , interest rate hikes will be a key theme this year . Of the investors surveyed , some 76 % predicted 2022 will be the year of rate rises while just 4 % forecasted it would be the year of rate cuts .
How the Federal Reserve reacts to the current bout of rising inflation will be crucial in determining the direction of markets this year . At the end of last year , the US central bank signalled three rate hikes in 2022 , however , some market analysts believe there could be even more after US inflation spiked at its fastest rate in 39 years ( 7 %), the Bureau of Labor Statistics reported earlier this year .
The Fed is in an unenviable position . Tighten monetary policy too fast and this could send markets into a taper tantrum , however , act too slowly and the US economy could overheat with millions of people feeling the pinch from high inflation .
2022 will be a year of :
Rate rises 76 %
11 % 13 %
Rate cuts 4 % 84 %
12 %
Yes No Not Sure
76
% be
predicted 2022 will be the year of rate rises while just 4 % forecasted it would the year of rate cuts
ETF Scan : The Big Picture | 9