Global markets are obsessed with U.S. interest rate policy, and for good reason. Interest rates around the world have been lowered in the continuing monetary fight against slow growth and recessions. Interest rates are incredibly important because they are the framework by which the value of assets are assessed and they are a reflection of the health of the economy. Additionally, a mismatch between market expectations and interest policy is the single biggest known risk to global markets. Because the U.S. economy has been viewed as “better” than the rest of the world, and because of the inherent importance of interest rates to global assets, markets have become obsessed with the timing and effects of U.S. interest rate rises.
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