Federal Reserve Uncertainty Keeps Global Interest Rates Elevated

The Federal Reserve's uncertain policy path is keeping global interest rates elevated, according to ING economists.

The Dutch banking group points to a 'surprise risk' from the Fed that is preventing a broader decline in borrowing costs worldwide.

This uncertainty acts as a floor under global yields, with investors demanding a higher premium to hold longer-dated debt.

The assessment comes as central banks from the eurozone to Asia grapple with their own inflation and growth challenges, often looking to the Fed for directional cues.