The global rate hike cycle just kicked into a higher gear.
Nearly half of all central banks worldwide raised rates in the last 3 months—the most aggressive tightening wave in 3 years. That's a 40-point jump since March.
Just seven months ago, most central banks were cutting. Now? 42 rate hikes in the past six months. That's quadruple the pace from earlier this year and matches the intensity we saw back in 2019.
This matters for U.S. markets. When global liquidity tightens, capital flows shift. Emerging markets feel pressure first, but it eventually circles back to dollar-denominated assets, credit spreads, and equity multiples.
If you're wondering why growth stocks have been wobbly or why the dollar's been stubborn, this is part of the backdrop. Tighter global money rarely stays contained overseas.
Keep an eye on how the Fed responds if this wave keeps building. They might talk about pausing, but the global picture is moving the other direction.
Nearly half of all central banks worldwide raised rates in the last 3 months—the most aggressive tightening wave in 3 years. That's a 40-point jump since March.
Just seven months ago, most central banks were cutting. Now? 42 rate hikes in the past six months. That's quadruple the pace from earlier this year and matches the intensity we saw back in 2019.
This matters for U.S. markets. When global liquidity tightens, capital flows shift. Emerging markets feel pressure first, but it eventually circles back to dollar-denominated assets, credit spreads, and equity multiples.
If you're wondering why growth stocks have been wobbly or why the dollar's been stubborn, this is part of the backdrop. Tighter global money rarely stays contained overseas.
Keep an eye on how the Fed responds if this wave keeps building. They might talk about pausing, but the global picture is moving the other direction.
