Market concerns are rising over divisions at the top of the Federal Reserve on when to lift interest rates, casting fresh uncertainty over the US central bank’s strategy for withdrawing its monetary stimulus.
The divisions burst into the open this week when two Fed board members signalled that they oppose a near-term increase in interest rates, questioning the approach adopted by chair Janet Yellen amid divisions over the outlook for inflation.
Larry Fink, chief executive of BlackRock, the world’s largest asset manager, warned yesterday that uncertainty was leading to heightened volatility.
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