Prudential CEO Says Interest Rate Rise Biggest Concern

Future monetary policy by the U.S. Federal Reserve is the biggest concern for the multinational life insurance and financial services company Prudential, according to its group chief executive.

Tidjane Thiam told CNBC Tuesday that the U.S. is definitely recovering and sees its economy as “strong” with healthy productivity. However, he added that its central bank had the power to have the greatest impact on the company’s fortunes in the near future.
“The ‘big cloud’ is interest rates, ” he said. “When interest rates will normalize….at what speed and at what magnitude?”

A low interest rate environment, ensured by several global central banks, has meant borrowing rates for loans and mortgages have been at favorable levels in recent years. With the Federal Reverse now looking to end its quantitative easing (QE) program, many now believe it could start to raise its main benchmark interest rate at some point in 2015.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza