Expect 2022 to be “a year of policy tightening”, says Andrew Sheets of Morgan Stanley. This time last year, investors thought America’s Federal Reserve wouldn’t raise interest rates until April 2024. As recently as last August, market pricing still implied that “liftoff” wouldn’t come until April 2023. Yet with inflation soaring, the Fed has been forced to take a more hawkish stance. Traders are now expecting the first rise as soon as this March.