TOKYO – Is Asia being complacent about the risk of assertive Federal Reserve tightening?

The answer looks to be “yes.” And that is worrisome. December 2021 is beginning to feel a lot like December 2015 as Chairman Jerome Powell prepares world markets for the Fed hitting the brakes perhaps soon.

Markets seem oddly calm about the Fed turning hawkish. Perhaps irrationally so.

In more conventional times, governments would be directing banks to set aside more reserves and rainy day funds to hedge against upcoming turbulence. And central banks should be at the ready to calm markets.

In the region, there is no sign that policymakers are preparing for the worst.