BlackRock's Hegarty Says March Fed Hike Is 'Warranted'

Martin Hegarty discusses global inflation pressures, focusing on base effects from energy prices and their impact on CPI in the US and Europe. He highlights the Federal Reserve's recent stance on interest rates and its implications for market pricing. Hegarty also shares investment strategies, emphasizing the potential undervaluation of inflation-linked markets and the risk of rising risk-free rates.

What is the main factor currently influencing headline inflation globally?

• Base effects from weaker energy prices

• Government fiscal policies

• Increased consumer spending

• Rising interest rates

What is the expected trend for core inflation in the US by the end of 2017?

• It will decrease significantly

• It will remain stable at 2%

• It will be between 2.3% and 2.4%

• It will exceed 3%

How has the Federal Reserve's recent stance affected market expectations?

• It has stabilized market expectations

• It has increased the likelihood of a March rate hike

• It has led to a decrease in inflation expectations

• It has decreased the likelihood of rate hikes

What is the investment strategy suggested for inflation-linked markets?

• Focusing on high-risk stocks

• Avoiding inflation-linked markets

• Investing in long-term bonds

• Trading from the short side

What is the perceived risk for risk-free rates globally?

• They are expected to become negative

• They are expected to decrease

• They are expected to remain stable

• They are at risk of moving higher