What is of concern is the market’s discounting of the Federal Reserve’s own predictions for future rate rises. The disparity between what the Federal Reserve predicts about the path of rate rise and what the market expects it to do has been well known. A quicker and steeper than expected rate rise cycle in the US would have an impact on EMDE capital flows.
Fortunately, those who have spent time over the last several years considering the Year 2000 problem are aware of the need for information sharing to maintain business and public confidence.