Investors cautioned against Fed’s decision to raise interest rates: broker

This as Fed’s reported to raise interest rates by 75 basis points (bps).

Global online broker, TD Ameritrade, said investors should maintain a diversified portfolio to ensure that they could mitigate short-term market volatility.

TD Ameritrade Singapore CEO Greg Baker’s comments stemmed from Fed’s announcement to increase interest rates by 75bps, with the recent US consumer price index data increasing 0.1% from July.

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“The recent US consumer price index data, which rose 0.1% from July and 8.3% from last year, has indicated that inflation is not yet under control,” Baker told the media.

With this, markets are now expecting the Fed to continue the monetary policy until year-end. 

Aside from this, Baker said Europe’s energy crisis and heightened global political unrest might put “global economy at risk of recession within the next year.”

“Investors should keep their sights on the long-term and maintain a diversified portfolio that can weather the short-term volatility in the current market,” Baker said.