The head of ETF strategy at $19.5 billion Allianz shares how to manage risk with the Federal Reserve forced to ‘strangle the economy’ to slow inflation

• Stocks tanked after the Federal Reserve raised interest rates, even though the move was telegraphed.
• Johan Grahn of Allianz Investment Management shared why a soft landing for the economy won’t happen.
• Here’s how investors can manage risk and limit volatility as odds of a recession rise.

The Federal Reserve’s decision to raise interest rates by 75 basis points in September to stop high inflation came as no surprise. Or, in the words of Johan Grahn, the head of ETF strategy at $19.5 billion Allianz Investment Management, it was “not necessarily earth-shattering.”

But the move may end up shattering an already-fragile economy.

“There’s no doubt that they will have to strangle the economy,” Grahn said of the US central bank in an interview with Insider on Wednesday afternoon. “And I think that’s clear to most.”