QUOTE(MUM @ Mar 22 2021, 09:58 AM)

Damn
just when you think it is over,....
then this came along...
" Expected policy changes by the U.S. Federal Reserve could have an adverse impact on China's capital inflows, Wang Yiming, a newly appointed policy adviser to the central bank, said.
Capital inflows into China have increased as the yuan has appreciated, but any "marginal changes" in the Fed's policy could impact global fund flows, Wang told the China Development Forum in Beijing on Saturday.
"Previously, the local currency appreciated and capital flowed in. But that (Fed policy move) could bring about adverse changes, which could have an impact on market expectations, capital markets and asset prices," Wang said.
"How big the impact could be? It’s hard to estimate, but the risk does exist."
The U.S. economy is heading for its strongest growth in nearly 40 years, the Federal Reserve said on Wednesday, and central bank policymakers are pledging to keep their foot on the gas despite an expected surge in inflation.
The Fed may have to change its policy over time if
U.S. inflation rises sharply, Wang said."
Fed policy changes could hit China capital inflows - central bank adviser
Sat, 20 March 2021
https://sg.finance.yahoo.com/news/fed-polic...-133750698.htmlreserving seats for another coming roller coaster ride

not sure if i can explain it properly but its similar situation with the yield fiasco
the fed have been continuously stress, before and during covid that they aim for 2% inflation rate
but despite multiple announcement from powell mentioned they dont plan to rise the interest rate until at least 2023, the market/investor still get spook
the inflation rate are bound to rise ''sharply''
simplest example i can think of
pre covid = 2.3%
during covid = 1.4%
fed aim = 2%
1.4 heading to 2% = 0.6% up
approximately 40% increase in inflation rate which ''looks'' significant
This post has been edited by xcxa23: Mar 22 2021, 11:42 AM