Stock market values have taken fright globally after the US central bank indicated it was to launch a concerted effort to tackle a surge in COVID-linked inflation.
The Federal Reserve placed financial markets – which have relied on its cheap stimulus cash for almost two years – on notice that interest rates were likely to start rising in a sustained fashion from March.
It also reaffirmed that its bond purchase programme was to end that month as attention turns from COVID crisis support to taming the pace of price rises.
US inflation, at 7% in December, is at its highest level for 40 years. It has surged globally, including in the UK, on the back of unprecedented spikes in energy costs and supply chain disruption.
UK inflation hits a 30-year high
Analysts warned of the increased prospect of a sustained period of volatility for values.
They said what had spooked markets was the…
