Arif Husain: Investors need to prepare for the volatility brought about by the Federal Reserve's policy shift

T. Arif Husain, Global Head of Fixed Income at Rowe Price, stated that as the Federal Reserve considers reducing its balance sheet and decreasing forward guidance, investors need to prepare for a management era of greater uncertainty and volatility. Asset prices are more sensitive to economic data and policy trends, and strategies that benefit from low volatility in the post global financial crisis era will face challenges in the coming years. If the Federal Reserve reduces its balance sheet again, it will prompt the market to reassess its expectations for a decrease in volatility. The volatility first appears in the interest rate market, then spreads to the credit market, and ultimately affects the stock market.