Live Markets: Fed's volatility

Bayerische Motoren Werke AG

18/06/2026 11:34

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OPPORTUNE VOLATILITY
Kevin Warsh seems likely to change up the Federal Reserve’s communication strategy, potentially giving markets less guidance about what the central bank may do.
“We've become accustomed to, over the last, I guess, 20 years, maybe 15 to 20 years, of just knowing what the central bank's going to do, and so volatility has remained relatively low in rates markets,” Jamie Niven, head of fixed income at Candriam, said.
Going forward though, he notes, there could be higher volatility around Fed decisions – and, according to Niven, that’s a good thing.
“For rates investors, particularly from my perspective, I think some volatility gives you opportunities,” he said. “I think it's a positive for us.”
Opportunities arise especially when there is mispricing, Niven added.
“I think when you have a central bank who have that forward guidance, they tell a market what's going to happen, people are positioned beforehand, and there's less of a, I guess, a skill in trying to determine what direction they're going to go.”
(Sophie Kiderlin)
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EARLIER ON LIVE MARKETS:
CHINA LEADS RECORD CAR LAUNCHES, TESTING GLOBAL AUTOMAKERS CLICK HERE
STOXX 600 DIPS; BROKER ACTION, DEAL TALK DRIVE MOVERS CLICK HERE
BEFORE THE BELL: EUROPE EYES SOFT OPEN AS FED JITTERS OUTWEIGH U.S. FUTURES BOUNCE CLICK HERE
WARSH DEBUT RAISES RATE-HIKE STAKES CLICK HERE