John Ryding

The chief US fixed-income economist at Bear Stearns gives his views on the outlook for inflation, the Fed's interest rate policy in the year ahead and how asset markets will react to further rate increases. Interview by Saskia Scholtes

Over recent weeks, 19 central banks - accounting for over four-fifths of global GDP - have tightened monetary policy. Global growth has been strong in recent years and monetary policy has been relatively accommodative in many countries. But as the global growth cycle matures while central banks express concern over inflationary pressures, the question is when will monetary policy move back to neutral?

The Federal Reserve is presented with a choice: continue to tighten monetary policy to contain