The Fed's global interest rate is not the only thing that's going on

ON 17 AUGUST, AT A TIME WHEN INVESTORS WERE DEBATING WHETHER AND WHEN THE FED WOULD RAISE INTEREST RATES, EXPECTATIONS OF FURTHER TIGHTENING MARKETS ACROSS THE GLOBE WERE RISING, WHICH WAS BAD NEWS FOR THE DEBTOR MARKETS. DEALERS EXPECT THAT BORROWING COSTS IN JAPAN, CANADA, THE EURO ZONE AND THE UNITED KINGDOM WILL RISE FASTER THAN IN THE UNITED STATES IN THE COMING YEAR. TWO THIRDS OF THE 32 INTEREST RATE EXCHANGE MARKETS TRACKED BY BLOOMBERG HAVE REFLECTED INTEREST-RATE RISE EXPECTATIONS, WITH THE REPUBLIC OF KOREA TAKING THE LEAD, AND MARKET PRICING HAS INCREASED BY MORE THAN 100 BASIS POINTS. THIS MARKED A SHIFT IN INTEREST RATE CYCLES IN RECENT YEARS, LED BY THE FED. THIS TIME, CENTRAL BANKS FACED MULTIPLE PRESSURES: OIL PRICES ROSE AS A RESULT OF THE IRANIAN WAR, GOVERNMENT SPENDING INCREASED SIGNIFICANTLY, AND THE STRONG GROWTH DYNAMICS OF THE AI INVESTMENT BOOM. INFLATION IN OECD MEMBER COUNTRIES HAS RECENTLY RISEN TO ITS HIGHEST LEVEL IN TWO YEARS。